Shanghai Copper Market Sees Quiet Pre-Holiday Trading Amid Spot Premium Pullback

The copper market in Shanghai has seen quiet trading ahead of the holiday period, with spot premiums continuing to pull back. According to SMM, social inventory in Shanghai and Jiangsu stood at 49,200 mt and 12,700 mt respectively on September 30, down from previous weeks.

Downstream processing enterprises had largely completed their holiday stockpiling before the break, and suppliers' initial quotes for copper cathode were at premiums of 1,000-1,100 yuan/mt. However, these quotes quickly dropped to around 850-860 yuan/mt as trading progressed, with non-registered copper quoted at premiums of 450-650 yuan/mt.

Looking ahead to the post-holiday period, SMM expects social inventory accumulation during the holiday to impact spot premiums in the short term. The recovery of downstream orders after the holiday will also be crucial in determining actual purchasing intensity and whether new orders can significantly increase.