North China Copper Premiums Climb Amid Suppliers' Caution
North China's spot copper market saw a slight increase in premiums yesterday as suppliers' willingness to sell cooled down. According to Shanghai Metals Market, spot #1 copper cathode against the front-month contract was quoted at premiums ranging from 40 yuan/mt to 140 yuan/mt, with an average premium of 90 yuan/mt, up 5 yuan/mt from the previous trading day.
The average transaction price was 105,350 yuan/mt, up 315 yuan/mt from the previous trading day. Despite the higher prices, downstream demand remained sluggish, and purchasing sentiment continued to weaken. This led to a pullback in suppliers' willingness to sell, causing spot premiums to edge up.
The market is currently in its traditional demand off-season, which typically sees lower demand for copper cathode. However, even with high copper prices, end-users are not showing much enthusiasm for purchasing, further contributing to the cooling of suppliers' willingness to sell.