Concentrated arrivals of imported copper combined with high backwardation pressure cause spot premiums to pull back rapidly [SMM Shanghai Spot Copper]

[Shanghai spot copper market] Looking ahead to tomorrow, SMM recorded social inventory in Shanghai at 66,500 mt, up 11,800 mt WoW from last Thursday, mainly due to concentrated arrivals of imported copper. Social inventory in Jiangsu was recorded at 19,800 mt, down 2,600 mt WoW, mainly due to fewer domestic arrivals combined with normal downstream cargo pick-up and warehouse withdrawals. With the significant replenishment of imported supply in Shanghai, the tightness of available supply in the market has further eased. Meanwhile, as delivery approaches, open interest in the SHFE copper 2610 contract stood at about 31,000 lots by midday, with SHFE warrants at just over 8,000 mt.