This week, domestic mainstream copper inventories saw a significant buildup, reaching a historically high level [SMM weekly data].

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the Shanghai spot copper market is expected to remain in the doldrums. Demand side, as it is currently month-end, most downstream enterprises have basically completed their monthly procurement plans, with limited new purchasing demand remaining, and the rest mainly focused on picking up goods under long-term contracts. Therefore, there were fewer inquiries during the day and transactions were sluggish. However, on Wednesday this week, as a new monthly procurement cycle begins, coupled with stockpiling demand ahead of the Qingming Festival, downstream buyers with cargo are expected to see some increase in purchasing demand, which may provide temporary support to spot premiums at that time. Supply side, imported cargoes have continued to arrive recently, and the destocking speed of social inventory in Shanghai has slowed down, with overall circulating supply remaining relatively ample, putting some pressure on the room for discount recovery. Overall, spot prices against the SHFE copper 2604 contract are expected to remain at current levels tomorrow, and after mid-week, attention should be paid to whether increased downstream purchasing can drive a slight narrowing of discounts.