Tight supply pushes up premiums, high prices constrain spot transactions [SMM North China copper cathode spot weekly review]

In North China, as of this Thursday, spot premiums stood at 960-1,040 yuan/mt, averaging 1,000 yuan/mt, up 570 yuan/mt WoW. Premiums rose sharply from last week. Spot supply was tight, with suppliers holding prices firm and showing weak willingness to sell, supporting the high spot premium structure. Futures consolidated at highs, and high copper prices combined with premiums above 1,000 yuan suppressed downstream purchases. End-user pre-holiday stockpiling was insufficient, leaving market trading sluggish. Both buying and selling sentiment pulled back, and premiums eased slightly from highs. Looking ahead, the tight supply situation is expected to persist in the short term, providing support for premiums; high prices will continue to curb end-use demand. Spot premiums are expected to consolidate at highs next week, with market trading remaining sluggish.