SHFE Copper Spot Discounts Narrow Amid Delivery Approach and Market Dynamics

Published: Jan 13, 2026 15:09

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[SMM Shanghai Spot Copper] Recently, the SHFE copper front-month contract has primarily fluctuated within the range of 101,000–105,000 yuan/mt, yet spot discounts have shown a noticeable narrowing trend. Is this due to downstream acceptance of high copper prices, or are there other factors at play? According to SMM's market communication, as the delivery date for the SHFE copper 2601 contract approaches, the previously large spot discounts have led to a significant portion of spot cargo being converted into futures warrants, reducing the availability of circulating spot supply. Additionally, the SHFE nearby contracts maintain a relatively large contango structure, dampening suppliers' willingness to sell, which in turn supports the narrowing of discounts. Currently, downstream consumption fundamentals remain dominated by just-in-time procurement, and it is expected that spot trading against the SHFE copper 2602 contract will return to a discount.

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