Shandong Copper Market Stagnant Amid High Prices and Wide Price Spread
The copper market in Shandong was characterized by stagnant spot transactions and low downstream demand this week, despite rising copper prices. The average spot price in Shandong moved lower throughout the week, with a discount of 130 yuan/mt reported on Thursday.
Copper prices surged during the week, but the wide price spread between futures contracts remained unchanged, leaving downstream enterprises cautious and hesitant to buy. Suppliers attempted to cut prices to stimulate sales, but their efforts were met with limited acceptance from downstream buyers.
Looking ahead to next week, high copper prices are expected to continue suppressing demand, making a spot price recovery unlikely. However, current social inventory levels are low, which may provide support for spot prices after the contract rollover. As a result, the room for a spot price pullback is expected to be limited.