Chinese Copper Spot Premiums Fall as Supply and Demand Weaken

The Shanghai Metals Market (SMM) reported that copper spot premiums are falling under pressure due to weak supply and demand. Copper prices have been high, leading downstream enterprises to maintain just-in-time procurement. As a result, open interest in the SHFE copper 2609 contract has remained low at 29,240 lots. Suppliers have not yet begun converting deliverable cargoes into warrants.

According to SMM, both imported and domestic smelter arrivals are limited, exacerbating the supply shortage. High-quality copper such as Guixi and Jintun large plates were quoted at a premium of 150-180 yuan/mt, while standard-quality copper was quoted at parity to a premium of 50 yuan/mt.

Looking ahead to tomorrow, SMM expects premiums to continue edging down slightly due to weak supply and demand. The SHFE copper 2609 contract retreated after multiple rapid rises, closing at 112,290 yuan/mt.