Shandong Copper Cathode Spot Premiums Reach Near Four-Year High
Copper cathode spot premiums in Shandong province have hit a near four-year high of 1,010 yuan/mt. The tight supply and strong demand are driving up prices. After copper prices pulled back last week, downstream demand was released rapidly, coupled with insufficient imported copper supply, social inventory destocked to a low level of around 70,000 mt.
This extremely tight spot supply has led suppliers to oversell and hold prices firm, pushing spot premiums sharply higher. Copper processing enterprises in the province showed weak acceptance of high copper prices and premiums, with insufficient willingness to stockpile before the holiday, leading to sluggish transactions during the week.
As the National Day holiday approaches, market trading will become even more sluggish due to the lack of enterprise stockpiling. However, severe spot tightness is unlikely to result in a quick pullback of spot premiums.