Weak Consumption, Traders' Secondary Copper Rod Inventory Gradually Increases [SMM Secondary Copper Daily Review]

The construction and trial operation of the second phase of the Mirador Copper Mine project under Tongling Nonferrous Metals have been completed, and the signing of its Mining Contract is currently being advanced.

[SMM Shanghai Spot Copper] Intraday trading in the spot market was subdued, while suppliers still showed willingness to hold prices firm. Downstream wait-and-see sentiment remained relatively strong, and spot premiums edged down slightly from yesterday. As the contango price spread between nearby contracts narrowed, suppliers' willingness to ship to delivery warehouses weakened somewhat, putting pressure on spot premiums. On the demand side, downstream buyers maintained just-in-time procurement, and transactions remained sluggish even after suppliers slightly lowered their quotations, as current copper prices had limited appeal to end-users. On the supply side, domestic copper and imported cargoes previously locked in at fixed prices continued to arrive, while social inventory remained at a high level. The outflow of warrants over the next two days may further weigh on spot premiums. Meanwhile, signs that the import window may still open persisted, and expectations for subsequent inflows of ex-China cargoes strengthened, further increasing supply-side pressure. Overall, amid a pattern of weak supply and demand, Shanghai spot copper premiums are expected to remain under pressure tomorrow, with a possibility of a slight widening.

[SMM North China Copper Cathode Spot Market] After the contract rollover, downstream buyers picked up goods under long-term contracts. Coupled with the recent improvement in northern demand, spot supply in the market was slightly tight, giving suppliers confidence to hold prices firm.