The Shanghai-Guangdong price spread is widening, and Shanghai copper may remain at a discount tomorrow.

Looking ahead to tomorrow, from the regional price difference perspective, the intra-day Shanghai-Guangdong price spread has further widened compared to yesterday, reaching 200 yuan/ton, opening a theoretical arbitrage window. On the demand side, after the copper price’s continuous decline, downstream purchasing sentiment has slightly improved, but overall it remains mainly driven by just-in-time demand. Overall, under the combined influence of cross-region arbitrage diversion and the support of the monthly spread structure, it is expected that the Shanghai copper spot price will continue to trade at a discount to the 2605 contract tomorrow. Future attention should be paid to the transmission effect of Guangdong’s premium trend on the East China market. (SMM)

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