The spot market experienced sluggish consumption, forcing suppliers to lower their offer premiums, leading to a decline in premiums. [SMM Shanghai Spot Copper]

SMM reported on March 27: Today, spot prices of #1 copper cathode against the SHFE copper 2504 contract were quoted at a discount of 60 yuan/mt to parity, with an average discount of 30 yuan/mt, down 10 yuan/mt from the previous trading day. Standard-quality copper traded at 81,370-81,770 yuan/mt, while high-quality copper traded at 81,390-81,800 yuan/mt. The SHFE copper 2504 contract opened slightly higher in the morning session and hovered around 81,550 yuan/mt, then rose again in the second session to test 81,840 yuan/mt. The price spread between the SHFE copper 2504 and 2505 contracts fluctuated between a contango of 10-40 yuan/mt. The market was quiet throughout the day, with weak consumption leading to a continuous decline in premiums. At the start of the session, suppliers quoted standard-quality copper at a discount of 40-30 yuan/mt, while high-quality copper was quoted at a discount of 20 yuan/mt to parity. The market remained sluggish, with weak downstream buying, forcing suppliers to lower premiums. During the main trading session, standard-quality copper traded at a discount of 60-40 yuan/mt, and high-quality copper traded at a discount of 30-10 yuan/mt. SX-EW copper traded at a discount of 80 yuan/mt. Spot premiums stabilized before 11:00 AM. According to SMM, the destocking trend in domestic social inventory paused this week. Although east China maintained a destocking trend, the reduction in inflows was the main reason. Due to the recent continuous rise in copper prices, downstream consumption remained weak. Spot premiums are expected to continue declining tomorrow.