High copper prices curb demand, suppliers hold prices firm to push up North China spot copper premiums [SMM North China Spot Copper]

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the start of a new procurement cycle at the beginning of the month is expected to release some downstream and trader restocking demand, with intraday procurement sentiment rebounding from the previous trading day, providing some support to spot premiums. In terms of inventory, SMM recorded Shanghai social inventory at 77,000 mt, up 7,500 mt WoW from last Thursday, mainly due to the concentrated arrivals of a batch of non-registered copper. Jiangsu social inventory was recorded at 20,100 mt, down 1,100 mt WoW from last Thursday, reflecting that local consumption, although weak overall, still saw some just-in-time procurement. As low-priced non-registered copper flowed into the market, spot supply pressure increased somewhat, which may suppress offers for registered standard-quality copper. Overall, with support from procurement demand at the start of the month, but combined effects of a significant increase in Shanghai inventory and supply replenishment from non-registered copper arrivals, Shanghai spot copper quotes against the SHFE copper 2608 contract are expected to remain at a premium tomorrow. The overall center is likely to consolidate around current levels, with relatively limited upside room.