[SMM Shanghai Spot Copper] Tomorrow, with month-end approaching, downstream enterprises are expected to still primarily purchase based on rigid demand. The slight intraday uptick in SHFE copper prices today dampened market purchasing sentiment, and spot trading activity tomorrow is likely to decline compared with the previous trading day. According to SMM, current downstream purchase willingness is largely concentrated at premiums below 200 yuan/mt, with a significant psychological price gap between buyers and sellers. Suppliers may continue to lower offers to facilitate deals. Low-priced non-registered copper, due to its wide price spread with registered copper, has seen relatively decent transactions for some cargoes, but its boosting effect on overall demand is limited. As for inventory, SMM recorded social inventory in Shanghai at 69,500 mt, down 500 mt WoW from Monday; social inventory in Jiangsu at 21,200 mt, down 500 mt WoW from Monday. East China inventory saw slight destocking, still providing some support for spot premiums. However, the current decline in inventory is relatively limited, and offers for cargoes with invoices dated next month are relatively ample. Overall, against the backdrop of low inventory providing support, but weakening month-end consumption and strong downstream desire to bargain down prices, spot Shanghai copper prices against the SHFE copper 2608 contract are expected to maintain a premium tomorrow, but the overall center may continue to shift slightly lower.

[SMM Shanghai Spot Copper] Looking ahead to next week, spot copper discounts are expected to continue narrowing slightly. Copper prices rose during the session, but the Contango price spread between nearby futures contracts widened slightly. Suppliers showed a strong willingness to hold prices firm, driving spot discounts to narrow marginally. Available supplies in the Changzhou area remained persistently tight, which may support local spot prices. However, as month-end approaches, market trading is turning sluggish, with downstream purchases driven mainly by rigid demand and limited willingness to chase higher prices, and overall transactions are expected to be just balanced. Overall, under the combined effects of suppliers holding prices firm and sluggish month-end trading, Shanghai spot copper prices against the SHFE copper 2606 contract are expected to remain at a discount, with the discount likely to move sideways.

[SMM Shanghai Spot Copper] Intraday SHFE copper prices edged down, effectively activating some downstream buying interest. According to SMM, orders from some downstream processing enterprises increased by approximately 30% compared to the previous trading day, with some transactions concentrated around 103,500 yuan/mt, indicating that current price levels still hold certain appeal for end-users. Inventory side, SMM data showed that social inventory in the Shanghai area registered 181,800 mt, down 2,800 mt WoW from last Thursday; inventory in the Jiangsu area was 38,100 mt, up slightly 1,200 mt WoW from last Thursday. Overall, a mild destocking trend was observed, with inventory pressure easing marginally. From market performance, suppliers' offers remained basically stable, and the transaction center showed no significant downward shift. Overall, supported by demand release stimulated by copper price pullbacks and mild destocking, spot prices against the SHFE copper 2606 contract are expected to remain at a discount tomorrow, continuing a generally stable trend.