Spot #1 copper cathode premiums in North China fell significantly after a sluggish first trading day following the holiday. The average premium for the metal against the front-month contract was 270 yuan/mt, down 430 yuan/mt from the previous day. The average transaction price rose 1,020 yuan/mt to 112,105 yuan/mt. Despite a strong rebound in futures prices post-holiday, downstream buyers remained cautious, with only sporadic transactions. Suppliers, however, were active in selling, offering discounts to move volumes, which contributed to the decline in spot premiums. Market sentiment showed a slight drop in buying interest but an increase in selling activity.
The price spread between futures contracts remained wide, and the anode copper market continued to face challenges due to supply chain bottlenecks and invoice control policies. These factors have kept the market imbalance unresolved, affecting both supply and demand dynamics. The SMM database, which tracks ferrous metals, includes data on India's monthly pig iron, finished steel, and crude steel production, reflecting ongoing market trends.
As the industry prepares for future developments, the interplay between supply, demand, and regulatory policies will remain critical in shaping market outcomes.