After the nearby month turned into a backwardation, the premium rose. The release of warrants promoted slow destocking in east China [SMM Shanghai spot copper].

SMM March 31: Today, spot prices of #1 copper cathode against the SHFE copper 2504 contract were quoted at parity to a premium of 30 yuan/mt, with an average premium of 15 yuan/mt, up 20 yuan/mt from the previous trading day. Standard-quality copper traded at 79,860-80,020 yuan/mt, while high-quality copper traded at 79,870-80,030 yuan/mt. The SHFE copper 2504 contract opened lower in the morning session, starting at 80,450 yuan/mt and then following the previous trend downward, breaking through the 80,000 yuan/mt level and testing 79,830 yuan/mt. The price spread between the SHFE copper 2504 and 2505 contracts fluctuated between a backwardation of 10-50 yuan/mt. Copper prices fell during the day, while downstream consumption improved significantly WoW, driven by rigid demand and structure, pushing premiums higher. At the beginning of the session, suppliers quoted mainstream standard-quality copper against cargoes with invoices dated next month at 0 yuan/mt to a premium of around 20 yuan/mt, while high-quality copper was quoted at a premium of 10-30 yuan/mt. Some suppliers chose to release warrants due to the shift to backwardation and rising premiums, resulting in relatively small fluctuations in premiums and discounts overall. During the main trading session, mainstream standard-quality copper against cargoes with invoices dated next month traded at 0 yuan/mt to a premium of around 20 yuan/mt, while high-quality copper traded at a premium of 10-30 yuan/mt. SX-EW copper traded at a discount of 50 yuan/mt. Spot premiums remained stable until before 11:00 AM. According to SMM, domestic social inventory of copper cathode continued to build slightly over the weekend, with the increase mainly in Guangdong, as some smelters increased shipments to South China attracted by high premiums in Guangdong, while east China continued to destock. Some imported copper cathodes are expected to arrive in concentrated shipments soon, which is likely to slow the pace of social inventory destocking, and spot premiums are expected to rise slowly before the holiday.