Copper prices retreat as downstream replenishes stocks; Shanghai copper premium and discount may remain stable

Last night, copper prices in the overnight session opened sharply lower with a gap down. Some companies took advantage of the low levels to place replenishment orders, and intraday procurement demand increased somewhat. However, considering that concentrated replenishment had already taken place on the previous day, the actual incremental purchasing effort was limited. According to data released by the Shanghai Futures Exchange on March 19, intraday Shanghai copper bonded warehouse receipts fell by 1.22 million tons, which confirmed that after copper prices retreated, downstream buyers’ enthusiasm for purchasing on dips warmed up, and the spot premium/discount center subsequently shifted higher. In terms of market structure, the import profit window widened slightly; expectations of a further rise in the inflow of overseas supplies in the future may also exert some pressure on the supply side. Overall, amid the game between accelerated destocking and selling by holders, it is expected that tomorrow’s Shanghai copper spot premium/discount may remain at the current level. ( Shanghai Nonferrous Metals Network )