China to Make Greater Efforts to Attract and Utilise Foreign Capital

[SMM Shanghai spot copper] Looking ahead to tomorrow, SHFE copper surged in early trading, with end-users and downstream processing enterprises showing further reduced acceptance of the current high copper prices. New orders have yet to show significant growth, and procurement remains primarily need-based. On the supply side, SMM recorded social inventory in Shanghai at 54,700 mt, up 5,500 mt from before the holiday; social inventory in Jiangsu stood at 22,400 mt, up 9,700 mt from before the holiday, mainly due to the gradual arrival of cargoes from some smelters during the National Day holiday. However, imported copper replenishment remained relatively limited, and overall supply pressure was not yet pronounced. Meanwhile, on the first trading day after the holiday, some market participants had not fully returned to work, with enterprise resumption and procurement pace still in the recovery stage, leaving overall market trading relatively sluggish. In addition, social inventory in Guangdong increased by 11,100 mt from before the holiday, with the regional inventory buildup being relatively significant, and the Shanghai-Guangdong spot price spread widened sharply as a result. Nevertheless, no notable cross-regional cargo transfers or arbitrage activity has been observed in the market so far, and the actual impact on Shanghai's spot supply remains limited in the short term. Overall, against the backdrop of post-holiday inventory accumulation, high copper prices suppressing downstream procurement, and market demand not yet fully recovered, Shanghai spot premiums are expected to fall under pressure tomorrow. Going forward, attention should be paid to the actual recovery of downstream orders after work resumption, changes in the Shanghai-Guangdong price spread, and cross-regional cargo flows.