Copper Market in Shanghai Experiences Slowdown in Purchasing Enthusiasm

The copper market in Shanghai has experienced a slowdown in purchasing enthusiasm as some downstream enterprises have completed their pre-holiday stockpiling. According to SMM, social inventory in Shanghai increased by 2,400 mt from last week, mainly due to the arrival of imported copper replenishing supply.

The spot premiums for copper cathode against the SHFE copper 2610 contract declined to an average of 1,315 yuan/mt, down 25 yuan/mt from the previous trading day. Suppliers initially quoted ONSAN, Xiangguang, Lufang, JCC, and others at premiums of 1,400-1,500 yuan/mt but lowered quotes to facilitate transactions as market trading turned sluggish.

The supply side is marginally improving due to the arrival of imported copper, which may ease the tightness in available market supply. However, high copper prices combined with a steep backwardation structure continue to deter downstream procurement, leading to spot premiums expected to edge down next week.