High price spread between futures contracts before contract rollover suppressed buying interest, with spot premiums declining all the way [SMM Weekly Review of Spot Copper Cathode in Shandong]

      This week, spot premiums/discounts in Shandong have been on a downward trend. As of Thursday, the average spot premiums/discounts in Shandong were reported at a discount of 330 yuan/mt. Against the backdrop of the high price spread between futures contracts (BACK) for copper futures this week, most downstream enterprises maintained a wait-and-see attitude. As the contract rollover approached, suppliers had no choice but to continuously lower premiums and discounts. Spot transactions were mainly driven by rigid demand at low prices, and overall market trading activity was poor. Looking ahead to next week, downstream procurement enthusiasm is expected to improve after the contract rollover. Moreover, the low level of social inventory will provide support for firm spot prices, and it is anticipated that premiums/discounts in Shandong will show signs of recovery.

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