Imported goods supply suppression, Shanghai copper spot prices may continue to trade at a discount tomorrow

Looking ahead to tomorrow, the Shanghai copper spot market is expected to continue under a pressured trend. From the supply side, the market has recently seen a large volume of imported copper concentrated in arrivals, including Japanese copper brands such as SRP and TAMANO-P, as well as some non-registered sources. As these imported supplies continue to flow in, they have put clear pressure on spot discounts. From the demand side, after copper prices rose during the day, the order quantities from end-user companies declined; end-users have limited acceptance of the current price level, and they lack willingness to chase higher prices, resulting in relatively weak overall consumption. In addition, according to SMM, some downstream companies are building inventory ahead of the holiday; while a few smelters have seen relatively good transaction conditions, it is difficult to reverse the overall weak market performance due to the constraint of high spot inventory levels. The price spread between good copper and ordinary water copper remains relatively narrow, reflecting that actual consumption demand still dominates the market, though the strength of demand remains to be seen. Overall, under the combined effects of pressure from imported supplies and cautious procurement by downstream buyers, it is expected that the Shanghai copper spot quotation to the 2604 contract will remain at a discount. (SMM)