Purchasing sentiment for copper cathode in Henan remains sluggish.

On Thursday this week, the average spot price of copper cathode in Shandong Province was at a discount of 470 yuan/mt. After the holiday, downstream copper processing enterprises gradually resumed operations, but the recovery in consumption was relatively slow. Enterprises were still digesting pre-holiday inventory, resulting in sluggish procurement. Smelters faced significant shipment pressure after delivery, and weak supply-demand conditions drove discounts lower. It is expected that next week, as enterprises fully resume operations, demand will rebound to some extent. However, under the pressure of high social inventory, the room for spot discount recovery will be limited.

Spot copper discounts in Shanghai are expected to stay under pressure tomorrow. Despite a slight pickup in procurement as downstream firms resume operations, sustained supply continues weighing on sentiment. With the Contango spread at 350-420 yuan/ton, warrant holders' delivery incentive persists, diverting spot liquidity. Imported and domestic copper arrivals continue amid incomplete downstream recovery, pushing social inventories higher. SMM data shows copper social inventories in mainstream Chinese regions reached a historically high 532,700 tons post-holiday. Unmatched delivery warrant outflows will further pressure spot premiums. The market remains in early-stage post-holiday rebalancing, with supply-side pressures set to keep spot discounts under pressure.