North China Copper Spot Premiums Slide Amid Constrained Purchases
The copper market in North China saw a decrease in spot premiums as the price spread between futures contracts constrained purchases. Spot prices for #1 copper cathode were quoted at parity to a premium of 100 yuan/mt against the front-month contract, with an average premium of 50 yuan/mt.
This represents a decline of 40 yuan/mt from the previous trading day, and the average transaction price was 109,730 yuan/mt, down 45 yuan/mt from the previous day. Despite futures remaining stable, overall market fluctuations were mild.
However, the relatively wide price spread between futures contracts weighed down downstream purchase willingness, which was weak. Suppliers' willingness to sell continued to rise, contributing to spot premiums moving further downward and market activity cooling somewhat.