Copper Billet Industry to Gradually Enter Traditional Consumption Off-Season in May

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, suppliers continuously lowered their offers during the day, with the premium center pulling back from around a premium of 50 yuan/mt in the early session to near parity. Some brands even saw slight discounts, reflecting limited downstream acceptance of high copper prices, with procurement driven mainly by rigid demand and insufficient willingness to chase higher prices. The inter-month Contango price spread between futures contracts narrowed, and suppliers' willingness to ship to delivery warehouse weakened somewhat. This Friday is the last trading day of the SHFE copper 2605 contract, and delivery logic is gradually emerging, which will provide bottom support for spot premiums and limit the downside room for further significant declines in premiums. Overall, Shanghai spot copper premiums against the 2605 contract are expected to remain at current levels tomorrow, continuing the weak consolidation trend, but downside room is limited under delivery expectations.

Today, #1 copper cathode spot prices in North China against the front-month contract were reported at an average discount of 240 yuan/mt to a discount of 120 yuan/mt, with the average discount of 180 yuan/mt down 20 yuan/mt from the previous trading day. The average transaction price was 104,085 yuan/mt, up 1,545 yuan/mt from the previous trading day.