The price spread between futures contracts for consecutive months widened, with sluggish transactions in the spot market [SMM Weekly Review of Spot Copper Cathode in Shandong]

      After the holiday, spot premiums/discounts in the Shandong region have been on a downward trend. As of Thursday this week, the average spot premiums/discounts for copper cathode in the Shandong region were reported at a discount of 50 yuan/mt. Specifically, on the first day after the holiday, the downstream purchase sentiment was not active, with most enterprises focusing on just-in-time procurement. However, due to the continuous destocking of social inventory, suppliers were given confidence to stand firm on quotes. As the back month spread between futures contracts continued to widen, the downstream procurement enthusiasm was further suppressed. Suppliers chose to lower prices to sell, and the transaction performance of some ultra-low-priced cargoes was moderate, but the overall transaction volume in the Shandong market remained unsatisfactory. Looking ahead to next week, as the delivery and contract rollover approach, and the month spread continues to widen, the downstream purchase willingness is limited. It is expected that premiums/discounts in the Shandong region will be more likely to fall than rise.

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