Shanghai Copper Spot Premiums Reach Near-Year Highs Amid Tight Cargo

Spot premiums for Shanghai copper against the 2609 contract have reached near-year highs as available cargo continues to tighten. The premiums rose by 85 yuan/mt from the previous trading day, with an average of 535 yuan/mt. Intraday sales sentiment for copper cathode in Shanghai was 3.1, up 0.13 MoM, while purchasing sentiment was 3.34, down 0.1 MoM.

Looking ahead to next week, SMM expects spot premiums to remain at elevated levels due to stronger expectations for replenishment from imports and cross-regional cargo. However, the momentum for further rises in spot premiums is expected to weaken as downstream acceptance of high-priced cargoes has declined somewhat.