Next week, Shanghai copper spot discount is expected to continue its steady recovery trend.

Looking ahead to next week, the Shanghai copper spot discount is expected to continue its steady recovery trend. From a market structure perspective, the maintenance of the approximately 300 yuan/ton intermonth C contango causes holders to resist selling and maintain high prices. Coupled with the effective activation of downstream purchasing willingness due to the downward shift of copper price center of gravity, the spot premium and discount have significantly increased. On the supply side, domestic copper and previously locked-in imported sources continue to arrive, combined with high social inventories, resulting in an overall ample circulating supply in the market. Under the joint effect of holders resisting price declines and downstream buyers purchasing on dips, the momentum for the spot discount to recover is expected to persist. ( Shanghai Nonferrous Metals Network )