Sinomine Resource Group Expands into Peru Copper Mine Project; Overnight LME Copper and SHFE Copper Both Closed Lower [SMM Copper Morning Meeting Minutes]

2026.5.27 Wednesday
Futures: Overnight LME copper opened at $13,625/mt, fluctuated downward to a low of $13,601/mt in early trading, then the price center moved sharply upward to $13,671/mt, before fluctuating downward again to finally close at $13,610.5/mt, down 0.18%. Trading volume reached 17,000 lots, and open interest stood at 268,000 lots, down 1,387 lots from the previous trading day, indicating bulls reducing positions. Overnight, the most-traded SHFE copper 2607 contract opened at 104,690 yuan/mt, dipped to 104,560 yuan/mt in early trading, then the price center fluctuated upward to a high of 105,050 yuan/mt, before swinging wildly to finally close at 104,760 yuan/mt, down 0.39%. Trading volume reached 24,000 lots, and open interest stood at 182,000 lots, down 17 lots from the previous trading day, indicating bulls reducing positions.
[SMM Copper Morning Meeting Summary] News:
(1) According to Sinomine Resource Group: On May 20, 2026, Sinomine Resource Group Co., Ltd. (hereinafter referred to as "Sinomine Resource Group") and Peru Jinda Mining Co., Ltd. (hereinafter referred to as "Peru Jinda Mining") signed a cooperation agreement at Sinomine Resource Group's headquarters regarding the La Joya copper mine project in Peru. Wang Pingwei, Chairman and President of Sinomine Resource Group, and Li Zuhui, Chairman of Peru Jinda Mining, signed on behalf of their respective parties. This signing marked the entry of the strategic cooperation between the two parties into a substantive stage, and also marked that Sinomine Resource Group, after years of research and exploration, officially took Step-1 in its layout of South American mining. According to the agreement, Peru Jinda Mining committed to re-registering the mining rights of the La Joya copper mine located in Peru under the name of a joint venture company jointly established by both parties and controlled by Sinomine Resource Group, while leveraging its localization advantages. Sinomine Resource Group will provide funding, technology, and industry chain resource support to jointly promote the development of the copper mine resources. The two parties aim to improve project development efficiency through complementary advantages and achieve sustainable economic benefits and strategic objectives.
Spot:
(1) Shanghai: On the morning of May 26, the SHFE copper 2606 contract opened lower with a gap and experienced multiple declines and rebounds. The opening price was 105,570 yuan/mt. After opening, prices quickly fell to 105,080 yuan/mt, stabilized and rebounded to 105,280 yuan/mt, then continued to decline to around 104,600 yuan/mt, before rebounding and trading between 104,600 yuan/mt and 105,020 yuan/mt, with a closing price of 104,900 yuan/mt. The inter-month Contango price spread between futures contracts ranged between 150 yuan/mt and 90 yuan/mt. The import profit margin for SHFE copper against the 2606 contract for the current month ranged from a loss of 470 yuan/mt to a loss of 380 yuan/mt. Looking ahead, copper prices are expected to edge down intraday, activating some buying interest, but downstream enterprises are still expected to mainly make just-in-time procurement with limited willingness to chase higher prices. In terms of invoice structure, the price spread between cargoes with invoices dated this month and cargoes with invoices dated next month is expected to maintain around 40 yuan, with the periodic shortage of invoices continuing. Overall, Shanghai spot copper prices against the 2606 contract are expected to remain at a discount today, or widen slightly.
(2) Guangdong: On May 26, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 160 yuan/mt, flat from the previous trading day; standard-quality copper was quoted at a premium of 80 yuan/mt, down 20 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 10 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 105,010 yuan/mt, down 735 yuan/mt from the previous trading day; the average price of SX-EW copper was 104,900 yuan/mt, down 745 yuan/mt from the previous trading day. Overall, the pullback in copper prices still failed to boost consumption, and suppliers had to cut prices to make shipments, causing spot premiums to pull back.
(3) Imported copper: On May 26, the average warrant price decreased by $2/mt from the previous trading day to $71/mt (price range $66-76/mt); the average B/L price decreased by $1/mt from the previous trading day to $72/mt (price range $68-76/mt); the average EQ copper (CIF B/L) price fell by $1/mt from the previous trading day to $42/mt (price range $38-46/mt), with quotes referencing cargoes arriving in late May and early June.
(4) Secondary copper: On May 26 at 11:30, the futures closing price was 104,900 yuan/mt, down 580 yuan/mt from the previous trading day; the average spot premiums were -75 yuan/mt, down 15 yuan/mt from the previous trading day. On May 26, copper scrap prices decreased by 200 yuan/mt MoM, the copper scrap sales sentiment index fell to 2.72, and the procurement sentiment index rose to 2.25. The price difference between copper cathode and copper scrap was 2,590 yuan/mt, down 372 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,390 yuan/mt. According to an SMM survey, as secondary copper rod enterprises in Southwest and Central China resumed production, the previously ample copper scrap supply may return to a tight state. Some copper scrap traders even indicated that recent sideways copper prices failed to attract upstream suppliers to make shipments, and with insufficient inventory, copper scrap traders had a weak willingness to sell.
Prices: On the macro front, Iran warned that if war resumes, it would strike back fiercely and block regional oil exports, condemning the US for violating the ceasefire agreement. The IRGC claimed to have shot down a US drone. Iran denied reaching a memorandum of understanding, but the president expressed willingness to reach a "dignified" framework agreement. The US carried out a defensive strike in southern Iran but stated it did not mean the end of the ceasefire. Trump spoke with the Israeli prime minister, and Rubio indicated that negotiations on agreement wording may still take several days. With the Middle East situation fluctuating, copper prices retreated after a rapid rise. Fundamentals side, supply side, domestic arrivals edged up, and the tight spot supply situation improved marginally, but high-quality copper sources remained relatively tight in circulation; demand side, downstream enterprises still focused on just-in-time procurement, and demand performance was weak. Overall, copper prices are expected to maintain a fluctuating trend within a narrow range today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions prudently and not replace their own independent judgment with this information. Any decisions made by clients are not related to SMM.]