SHFE Copper Price Pulls Back as End-User Demand Improves

The Shanghai Copper Futures (SHFE) price for the cathode 2609 contract pulled back on August 19, trading within a narrow range of 106,650 yuan/mt to 106,900 yuan/mt.

This decline in copper prices seemed to have a positive effect on end-user procurement, with some downstream enterprises reporting improved order performance and increased purchase willingness for copper cathode.

However, the influx of warrant cargoes that were not matched for delivery into the spot market put downward pressure on premiums. The increase in supply of circulating cargoes and notable counteroffers from downstream companies also contributed to this pressure.