SMM March 10 News:
Today, SMM #1 copper cathode spot prices against the current-month 2603 contract were quoted at a discount of 40 yuan/mt to a premium of 40 yuan/mt, with the average price at parity. In early trading, the SHFE copper 2603 contract rose and then dropped back slightly. It opened at 100,910 yuan/mt, then climbed all the way to a high of 101,620 yuan/mt before pulling back slightly, and closed at 101,200 yuan/mt. The inter-month contango price spread ranged between 380 yuan/mt and 300 yuan/mt, while the import profit margin for the SHFE copper current-month contract ranged between a loss of 440 yuan/mt and 350 yuan/mt.
Intraday, the sales sentiment for copper cathode in Shanghai was 2.9, down 0.02 MoM, and the purchasing sentiment was 2.78, down 0.04 MoM, . At the start of morning trading, suppliers quoted standard-quality copper at a discount of 50 yuan/mt to a discount of 10 yuan/mt, with SUMIKO-N, JCC, Lufang and others quoted at a discount of 30 yuan/mt to a discount of 10 yuan/mt, while Zhongtiaoshan, Dajiang PC, Jinchuan ISA, Zhongjin, Yuguang, and Jinchuan ISA Yongchang and others were quoted at a discount of 50 yuan/mt to a discount of 40 yuan/mt; high-quality copper such as Guixi and Jinchuan (plate) was quoted at a premium of 20 yuan/mt to a premium of 30 yuan/mt; and non-registered copper was quoted at a discount of 100 yuan/mt to a discount of 80 yuan/mt. In the first intraday time window, spot deals were concluded relatively quickly; some downstream enterprises found it difficult to source cargo and chose to procure based on fluctuations around the SMM average price for standard-quality copper. Entering the second time window, market-available cargo was limited; suppliers showed a strong willingness to hold prices firm and slightly raised standard-quality copper prices, quoting standard-quality copper at a discount of 40 yuan/mt to parity, with Jinguang, Jinxin, Tongguan, Jinfeng and others successively traded at a discount of 20 yuan/mt to parity; high-quality copper Jinchuan (plate) traded at a premium of 20 yuan/mt to a premium of 30 yuan/mt; registered SX-EW copper was scarce, with only some Myanmar cargo circulating, quoted at a discount of 50 yuan/mt. In addition, some cargo from Shandong was transported to Changzhou for sale during the day.
As the delivery period approached, Shanghai spot copper discounts were expected to continue narrowing steadily. From the market structure perspective, the inter-month contango price spread widened, significantly strengthening suppliers’ willingness to ship to delivery warehouse. In particular, inventory cargo in Jiangsu was mainly in the form of warrants, and suppliers tended to deliver rather than sell spot, resulting in persistently tight spot availability; moreover, spot premiums quotes in Jiangsu were slightly higher than those in Shanghai. As a result, suppliers showed a strong willingness to hold prices firm during the day, with second-window quotes slightly raised, and some downstream enterprises faced greater difficulty in procurement. Looking ahead to tomorrow, under delivery-driven dynamics, spot premiums in Shanghai were expected to remain at current levels.
