Shandong Copper Cathode Spot Transactions Shift as Premiums Rise

Copper cathode spot transactions in Shandong province saw premiums shift from a discount to a premium after delivery contract rollovers. By Thursday, the average spot premium had reached 140 yuan/mt. The copper market was highly volatile during the week, with prices spiking to 110,000 yuan/mt before pulling back to around 107,000 yuan/mt.

Market sentiment closely followed futures trends, and downstream transactions showed slight improvement from earlier sluggishness. Suppliers' willingness to sell remained relatively strong on the supply side, while demand continued in its traditional off-season pattern. Downstream enterprises mainly purchased as needed, with most point-price transactions covering raw material gaps for existing orders.

Although copper prices retreated from their highs, the absolute price level remained high, and market volume did not expand significantly. Looking ahead to next week, copper prices are likely to remain elevated, and demand is unlikely to see substantial improvement. Spot premiums may have room for a pullback in response.