Spot premiums first declined and then rose, expected to stabilize and climb higher next week [SMM Weekly Review of Shanghai Spot Copper]

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       >During the week, spot premiums first declined and then rose. After delivery, a large number of warrants were released, prompting suppliers to actively sell, causing premiums to drop sharply. Copper prices stabilized around 78,000 yuan/mt. Low premiums attracted downstream stocking, resulting in good outflows from warehouses during the week. After transactions at low prices, the available market supply tightened again. On Friday, the price spread between futures contracts for the next month and the current month widened to over BACK 300 yuan/mt, and premiums returned to above 150 yuan/mt. Looking ahead to next week, when entering into transactions with invoices dated next month, it is necessary to be vigilant about the temporary impact on premiums from the demand for month-end repayments. However, as the Dragon Boat Festival holiday approaches, downstream stockpiling demand will support premiums.

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