Copper Prices Shot Up, Suppressing Downstream Procurement; Spot Premiums Turned from Premium to Discount [SMM Shandong Copper Cathode Spot Weekly Review]

This week, spot premiums for copper cathode in Shandong pulled back significantly. As of Thursday, spot was reported at a discount of 110 yuan/mt, with the market quickly shifting from premium to discount, marking a steep decline. Affected by the sharp surge in copper prices, procurement by downstream end-users was sluggish. Suppliers proactively cut prices to facilitate transactions, and offers in the market diverged notably, with the spread between high and low prices widening. Smelters in the province completed maintenance and resumed production, and some suppliers showed strong willingness to sell, choosing to quickly cut prices to move goods; however, other suppliers with tight spot supply prioritized long-term contract deliveries and were reluctant to sell spot orders or offer significant discounts. Overall, the regional market exhibited an oversupply condition, with the continuously surging copper prices suppressing downstream purchase willingness to near freezing. Looking ahead to next week, if copper prices stay high, demand will be hard to improve, and there is still further downside room for spot premiums in Shandong.