Tomorrow, the Shanghai copper spot market is expected to recover, and the contango may narrow.

Looking ahead to tomorrow, the spot copper market in Shanghai is expected to see a phase of recovery. From the demand side, with the start of the new monthly procurement cycle, downstream companies’ previously accumulated procurement demand will be gradually released. Coupled with the stocking-up window ahead of the Qingming holiday, market inquiry activity is expected to pick up, and trading conditions may improve noticeably compared with the end of the month, providing some support for spot copper discounts. From the market structure perspective, the price spread between high-quality copper and standard copper has remained at a relatively narrow level, indicating that actual consumption demand is still driving the market and that brand-related premiums have weakened. On the supply side, recently imported goods have continued to arrive, and the rate at which social inventories in the Shanghai region are being drawn down has slowed; overall, available circulating supply remains relatively abundant, which limits the room for discounts to be repaired. Taken together, with the combined push from early-month procurement and holiday pre-stocking, it is expected that tomorrow the Shanghai spot copper discount versus the 2604 contract may narrow somewhat. (Shanghai Metals Market)