Shanghai Spot Copper Premiums Fall Amid Widening Backwardation Spread

The copper market in Shanghai saw spot premiums against the SHFE copper 2609 contract decline by 120 yuan/mt to an average of 375 yuan/mt, according to SMM. This drop comes despite a pullback in intraday SHFE copper prices from the previous trading day.

However, suppliers' willingness to sell strengthened significantly due to the widening backwardation spread between futures contracts, which rose above 550 yuan/mt. As a result, intraday quotes for standard-quality copper were lowered repeatedly to facilitate deals.

Downstream buyers, while making some just-in-time procurement, showed limited acceptance of spot premiums, which remained at elevated levels. Purchases were concentrated in lower-priced cargoes with little willingness to chase higher prices.