Warehouse Warrant Outflows and Limited Supplementation of Imported Copper; Copper Prices Decline, Boosting Suppliers' Confidence to Stand Firm on Quotes [SMM SHFE Spot Copper Weekly Review]

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        During the week, SHFE copper spot premiums remained high, mainly due to the continuous decline in inventory. In the latter half of the week, falling copper prices made suppliers more firm on spot premiums. However, the inflow of imported copper on Friday started to put pressure on spot premiums. According to SMM data, as of Monday, inventories in the Shanghai region had decreased by 17,300 mt compared to last Thursday and continued to decline by 2,500 mt during the week, reaching only 70,200 mt by Thursday. Notably, during the delivery period of the SHFE copper 2412 contract, warehouse warrants were mainly concentrated in two warehouses, C.Steinweg Yangshan and C.Steinweg Waigaoqiao, which is uncommon within the year. These warehouses primarily contained imported sources, leading to situations where goods were either directly picked up by downstream buyers or sold at low prices in the market. Overall, domestic copper supply remained relatively tight, and smelters in surrounding areas also maintained firm quotes, making it difficult for spot premiums to decrease. Looking ahead to next week as the year-end approaches, traders are expected to gradually take breaks, and downstream operating rates are likely to slow. It is anticipated that after transitioning to transactions with invoices dated next month, the market will gradually become quieter, with spot transaction prices expected to pull back.

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