On the demand side, spot premiums dropped on surging SHFE copper, pandemic outbreak and poor downstream demand. The popularity of copper cathode rod also weakened with a wide spread between copper cathode and scrap, evidenced by contained new orders. On the terminal end, the China Southern Power Grid slowed down the placing of orders. The delivery in east China that is covered by State Grid was normal, while the orders in north China were delayed until next year on spreading covid.
On the whole, copper prices are likely to rise to some extent with support from low inventory and the macro front. The most-traded SHFE copper is expected to move between 63,500-68,000/mt in November, and LME copper between $7,650-8,300/mt.
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