The price spread between futures contracts widened amid weak consumption, and spot premiums of Shanghai spot copper continued to decline [SMM Weekly Review of Shanghai Spot Copper]

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       Copper prices fell during the week, and downstream procurement sentiment improved. However, as it was already in the off-season, downstream order improvement was limited. In Shanghai, inventories declined slightly during the week, mainly due to the digestion of previously imported low-priced cargo. Looking ahead to next week, as the delivery date approaches, suppliers are expected to actively sell off their inventory amid high price spreads between futures contracts, and the spot discounts of SHFE copper are expected to widen further. However, due to delivery constraints, the extent of the spot discounts of SHFE copper is expected to be limited. After contract rollover, suppliers are expected to start quoting at a premium of 150-200 yuan/mt, but actual transactions are unlikely to improve significantly.

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