Spot discounts rebounded from 150 yuan/mt to 90 yuan/mt last week. Falling copper prices boosted downstream buying interest ahead of Labour Day holidays. Many smelters sold in large volumes, pushing up spot quotes in Shandong. Spot discounts stabilised at around 90 yuan/mt approaching the weekend.
According to a seller, there were many inquiries from downstream companies at the end of the week. But the downstream companies had replenished a large amount of goods when the prices fell sharply, and some companies were afraid of further price declines.
Therefore, purchases were subdued at the end of the week. Spot discounts are expected to stand at around 100 yuan/mt in Shandong after Labour Day holidays if SHFE copper prices remain low.
