Shanghai Spot Copper Premiums Pull Back Amid Tight Supply

The Shanghai spot copper market has seen a decline in downstream acceptance of high premiums and an increase in suppliers' willingness to sell, leading to a pullback in spot premiums.

According to SMM, available supply in the Shanghai region remains tight due to limited imported copper arrivals. However, with spot premiums staying high, downstream processing enterprises are showing decreased acceptance of current prices, and wait-and-see sentiment has strengthened in the market.

Suppliers' willingness to sell has increased, and some previously registered warrants have begun to flow into the spot market, though overall release volumes remain limited. Despite tight supply providing support for premiums, negative feedback from the demand side on high premiums is gradually emerging.