Shanghai Copper Spot Premium Remains Under Pressure, Oversupply Situation Unchanged

Looking ahead to tomorrow, the Shanghai copper spot discount is expected to continue under pressure. Although the spot discount has slightly recovered today, the overall market remains constrained by ongoing supply increases. In the early trading session, some holders showed strong willingness to hold prices, with good copper and some flat water copper quotes relatively firm, but actual transactions were light. After entering the second trading period, some holders began to offload, with brands like Tiefeng quoting a discount of 300 yuan/ton, leading to an overall decline in flat water copper prices, indicating that supply pressure remains the dominant factor. From a market structure perspective, the contango month spread remains high, and holders’ willingness to deliver continues, which will continue to drain spot liquidity. Meanwhile, imports and domestic copper arrivals persist, with sources like OLYDA already available today, continuously supplementing supply. On the demand side, resumption of work continues, but the overall recovery pace remains slow. Coupled with high copper prices, it is difficult to provide effective support for discounts. Overall, the increase in supply continues to suppress demand recovery, and the oversupply in the spot market remains unchanged. (Shanghai Nonferrous Metals Network)