Data: SHFE, DCE market movement (Aug 20)

[SMM SHFE Copper Spot] Looking ahead to tomorrow, as the delivery period approaches, spot discounts for SHFE copper are expected to continue narrowing steadily. Intraday, suppliers showed a stronger willingness to hold prices firm, and quotes in the second session were generally raised, with the transaction center moving higher. From a market-driver perspective, the decline in copper prices continued to spur downstream purchase willingness to buy the dip; both buying and selling sentiment rebounded, and order activity increased, providing support for spot cargo. Supply side, domestic copper and previously price-locked imported cargo continued to arrive, social inventory remained at high levels, and overall circulation was relatively ample, placing some constraints on the room for discount recovery. Overall, spot discounts are expected to maintain a steady upward trend tomorrow.

Copper prices fell below the 100,000 yuan/mt threshold, downstream willingness to restock strengthened, and market trading activity heated up significantly. Today, spot supply of copper cathode in Shandong tightened, and spot premiums rose markedly.