SHFE Margin Adjustments

The Shanghai Futures Exchange has increased margin requirements for the holiday break (May 1-5), forcing many speculators to close positions. This has led to a sharp, albeit seasonal, correction in refined cathode prices.

Supply Risks Loom

Despite the current dip, the structural outlook remains bullish. China's export ban on sulfuric acid is expected to hit Chilean copper output by late May, which may trigger a fresh supply squeeze once Asian markets reopen.