Main market conditions of metals in the previous period on July 2, 2019

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, SMM recorded social inventory in Shanghai at 58,600 mt, down 2,500 mt WoW from Monday, while social inventory in Jiangsu stood at 20,800 mt, up 2,300 mt WoW from Monday, with overall social inventory showing a slight destocking. From a supply-demand fundamental perspective, a large volume of imported copper is expected to arrive later, which may exert phased pressure on spot premiums. Downstream enterprises have low acceptance of the current high premiums, but due to tight supply of mainstream circulating cargoes in Shanghai, spot premiums for SHFE copper first declined and then rose during the day. Spot premiums for SHFE copper are expected to remain at a relatively high level tomorrow, with downside room still limited.

Copper prices trended lower this week, spurring improved downstream demand. Tight spot supply further bolstered sellers’ willingness to hold firm on prices. After contract rollover, Shandong spot copper cathode returned to a premium structure. As of Thursday, the average spot premium/discount was quoted at +430 RMB per tonne.