Copper Prices Rebound in China Despite Macro Uncertainty
Last week, China's refined copper prices rose, and the SHFE near-month backwardation remained wide. This led to cautious downstream buyers who limited raw material purchases to immediate needs.
However, low market arrivals and stronger downstream consumption after the price pullback kept refined copper retail inventory in China declining, supporting spot premiums in most major markets.
The 2609 contract is due for delivery this week, which may cause refined copper spot premiums to rebound in China. According to Mysteel, refined copper spot premium ranges are forecast with Guangdong at Yuan 100/tonne to Yuan 400/tonne, Tianjin at -Yuan 200/tonne to Yuan 200/tonne, and Chongqing at -Yuan 150/tonne to Yuan 200/tonne this week.
China's refined copper spot supply diverged across markets last week but was generally tight. In Shanghai, as port operations largely returned to normal, some previously delayed imported copper cargoes cleared customs and entered the market. Several smelters also increased deliveries, easing regional spot supply somewhat.