IFC and First Quantum Signed Copper Ore Agreement; Overnight LME Copper and SHFE Copper Both Closed Higher [SMM Copper Morning Meeting Minutes]

2026.4.9 Thursday
Futures: Overnight, LME copper opened at $12,398/mt, dipping to a low of $12,280/mt at the start of the session. Copper prices then rose to a high of $12,755.5/mt before moving sideways to close at $12,705.5/mt, up 3.06%. Trading volume reached 28,000 lots, and open interest stood at 294,000 lots, down 357 lots from the previous trading day, mainly driven by bears reducing positions. Overnight, the most-traded SHFE copper 2605 contract opened at 98,080 yuan/mt, touching a high of 98,500 yuan/mt at the start of the session. Copper prices then fluctuated lower to a low of 97,890 yuan/mt before closing at 98,330 yuan/mt, up 0.11%. Trading volume reached 33,000 lots, and open interest stood at 178,000 lots, down 3,110 lots from the previous trading day, mainly driven by bears reducing positions.
[SMM Copper Morning Meeting Summary] News:
(1) On April 8 (Wednesday), the International Finance Corporation (IFC) signed an agreement with First Quantum Minerals to advance the sustainable development of a copper mine project in Argentina. The partnership will help First Quantum Minerals secure debt financing for this $5.25 billion project.
Spot:
(1) Shanghai: On April 8, the SHFE copper 2604 contract opened with a sharp jump and then moved sideways with a fluctuating trend. The opening price was 95,880 yuan/mt. After opening, prices quickly surged to a high of 97,960 yuan/mt, then pulled back slightly, fluctuating between 97,520 yuan/mt and 97,800 yuan/mt, with a closing price of 97,620 yuan/mt. The inter-month Contango spread ranged from 90 yuan/mt to 40 yuan/mt, and the SHFE copper front-month import profit margin ranged from a loss of 20 yuan/mt to a profit of 140 yuan/mt. Looking ahead, the Shanghai spot copper market is expected to remain under pressure. Demand side, after the rapid rise in copper prices, downstream enterprises saw reduced orders, with most enterprises still relying on just-in-time procurement, though demand resilience remained. Market structure side, the inter-month Contango spread widened slightly. Suppliers holding long positions in the front-month contract, under the contango structure, were more inclined to hold positions for delivery rather than sell spot cargo at low prices, showing low willingness to sell at low prices and a strong willingness to hold prices firm. Overall, spot copper prices against the SHFE copper 2604 contract are expected to remain at current levels today.
(2) Guangdong: On April 8, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 180 yuan/mt, up 10 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 100 yuan/mt, unchanged from the previous day; SX-EW copper was quoted at a premium of 40 yuan/mt, unchanged from the previous day. The average price of Guangdong #1 copper cathode was 97,775 yuan/mt, up 830 yuan/mt from the previous trading day, and the average price of SX-EW copper was 97,675 yuan/mt, up 825 yuan/mt from the previous trading day. Overall, downstream demand weakened amid the sharp rise in copper prices, and overall trading activity was weaker than the previous day.
(3) Imported copper: On April 8, the average warrant price rose $2/mt from the previous trading day to $65/mt (price range $60-70/mt); the average B/L price was flat from the previous trading day at $61/mt (price range $56-66/mt); the average EQ copper (CIF B/L) price was flat from the previous trading day at $33/mt (price range $26-40/mt), with quotes referencing cargoes arriving from mid-April to early May.
(4) Secondary copper: On April 8 at 11:30, the futures closing price was 97,620 yuan/mt, up 990 yuan/mt from the previous trading day. The average spot premiums were -5 yuan/mt, up 20 yuan/mt from the previous trading day. On April 8, copper scrap prices rose 700 yuan/mt MoM. The copper scrap sales sentiment index rose to 2.54, while the procurement sentiment index remained unchanged at 2.35. The price difference between copper cathode and copper scrap was 171 yuan/mt, up 233 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,310 yuan/mt. According to an SMM survey, the US and Iran temporarily ceased hostilities, and copper prices rose rapidly, but prices already struggled to rise during the morning session. Secondary copper rod enterprises were not optimistic about subsequent upward momentum in copper prices and were in no rush to make large purchases, while copper scrap suppliers shipped on rallies. Trading in the copper scrap market was moderate.
Prices: Macro perspective, the temporary US-Iran ceasefire agreement was reached, and the US dollar index touched a one-month low, lending support to copper prices. However, the ceasefire agreement remained fragile — three of Iran's ten ceasefire terms had already been violated, shipping through the Strait of Hormuz remained volatile, and risk-aversion disruptions persisted in the market. Fundamentals side, supply side, imported copper continued to arrive at ports, while domestic supply arrivals decreased, leading to overall supply tightening; demand side, elevated copper prices suppressed procurement sentiment, with just-in-time procurement dominating. Overall, copper prices were expected to hold up well today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make prudent decisions and not replace independent judgment with this information. Any decisions made by clients are not related to SMM.]