The pattern of weak supply and demand continues, with poor market trading activity [SMM Weekly Review of Spot Copper Cathode in Shandong]

       This week, spot premiums/discounts in the Shandong region continued to decline. By Thursday, the average spot premiums/discounts in the Shandong region were reported at a discount of 190 yuan/mt. This week, the Shandong region continued to experience a weak supply and demand situation, with low market trading activity. Specifically, the center of copper prices pulled back during the week, and downstream orders improved somewhat. However, due to the industry's off-season, overall demand remained mediocre. Additionally, as contract rollover approached, near-month contracts exhibited a backwardation structure. Downstream procurement remained primarily driven by immediate needs. To achieve staged sales targets, suppliers lowered spot premiums/discounts to facilitate transactions. According to SMM, the current inventory at smelters in the Shandong region is not abundant, and suppliers temporarily have no inventory pressure. It is expected that after entering the contract rollover period next week, spot premiums/discounts are likely to stop falling and rebound.

》Check SMM metal quotes, data, and market analysis

》Subscribe to view historical price trends of SMM metal spot                  

                                                                                                                 》Check SMM metal industry chain database