Spot Copper Prices Seen Rising

SHANGHAI, Mar 6 (SMM) – The discounts in Shandong improved last week, rallying from 310 yuan/mt early last week to 230 yuan/mt.

From the perspective of downstream purchases, buyers restocked at a fast clip when copper prices fell last week, but trades weakened after copper prices rebounded. According to market feedbacks, the current downstream consumption is gradually picking up, and the demand for copper cathode has increased significantly compared with the prior week.

This week, although copper prices are still fluctuating at high levels, spot quotes in Shandong will continue to rise on improving downstream demand.

Spot quotes in north China inched higher last week. Spot copper was quoted with discounts of 430-210 yuan/mt, or an average discount of 320 yuan/mt, on February 24, and was quoted with discounts of 420-160 yuan/mt, or an average discount of 290 yuan/mt, on March 3, 30 yuan/mt higher than a week earlier.

In March, a combination of gradually improving downstream consumption and some shipments by smelters in north China to east China has lowered local inventories. Sellers thus raised prices. Spot quotes will have upside room this week.