Copper Market Sees Triple Pressure from High Prices, Premiums, Backwardation
The copper market has been experiencing triple pressures, including high prices, high premiums, and deep backwardation. The July market trend was in line with expectations, with the price spread between SHFE copper 2607 and 2608 contracts increasing to a high of over 600 yuan/mt during the session.
In August, the US tariff on copper remained unresolved, causing the price spread between copper markets in China and overseas to diverge. The COMEX-LME price spread persisted, while the LME-SHFE price spread showed signs of movement.
The tight supply pattern on the mine side continued, with domestic smelters gradually resuming production after their concentrated maintenance period. Meanwhile, robust market demand for replenishment suppressed copper concentrate spot TCs, further squeezing smelter processing profits.