North China Copper Prices Rebound as Futures Pull Back
Copper futures in North China experienced significant pressure and pulled back yesterday, but this had an unexpected effect on spot prices. The average premium of #1 copper cathode against the front-month contract increased by 320 yuan/mt to a premium of 150 yuan/mt, while the average transaction price decreased by 1,690 yuan/mt to 107,805 yuan/mt.
Despite the pullback in futures, spot prices rebounded sharply. The market saw a small number of rigid-demand orders, but overall demand remained weak. Suppliers' willingness to sell declined somewhat, and market activity recovered slightly.
The spot copper price spread in North China was significantly repaired today. The purchase sentiment for copper cathode increased by 0.18 to 1.18, while the willingness to sell decreased by 0.04 to 2.69.