Data: SHFE, DCE market movement (Feb 25)

Zambia, Africa’s second-biggest copper producer, will use larger-than-expected mining revenues to start a stabilization fund this year, a senior treasury official said, ensuring the government has a buffer when a red-hot rally in the metal fades.

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.