Dominican Republic Suspends Gold-Copper Project Activities, LME Copper Closed Higher Overnight While SHFE Copper Was Closed [SMM Copper Morning Meeting Minutes]

2026.5.6 Wednesday
Futures: Overnight LME copper opened at $13,039/mt, dipped to $13,012/mt early in the session before the center shifted upward, touched a high of $13,161/mt and then moved sideways at elevated levels, ultimately closing at $13,100.5/mt, up 1.17%. Trading volume reached 17,700 lots, and open interest stood at 266,000 lots, an increase of 762 lots from the previous trading day, indicating bulls adding positions. The most-traded SHFE copper 2606 contract was closed overnight due to the Labour Day holiday.
[SMM Copper Morning Meeting Summary] News:
(1) Dominican Republic President Luis Abinader on Monday ordered the suspension of any activities related to GoldQuest Mining's gold-copper project. This followed protests by thousands of people over environmental concerns. The Romero project is located in San Juan province and is developed by Canada's GoldQuest. The company said earlier on Monday that it acknowledged the demonstrations and was committed to transparent development. Governments across the region are working to balance the economic incentives of mining projects with environmental commitments. Argentina recently legislated to support better access for miners to glacier areas, while Panama's largest copper mine (also operated by a Canadian company) was forced to close due to critics arguing that the national contribution was not enough to justify it and concerns over the mine's impact on soil, water, and wildlife.
Spot:
(1) Shanghai: On April 30, the SHFE copper 2605 contract showed a "W" pattern in the morning session. The opening price was 101,160 yuan/mt. After opening, prices dipped slightly to a low of 101,040 yuan/mt, then rose continuously to a high of 101,450 yuan/mt, before retreating to 101,150 yuan/mt where they stabilized and rebounded, with a closing price of 101,300 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 60 yuan/mt to 10 yuan/mt. The SHFE copper import profit margin against the 2605 contract for the current month ranged from a profit of 80 yuan/mt to a profit of 160 yuan/mt. Looking ahead, demand side, enterprises are still primarily making just-in-time procurement, and demand is unlikely to see a significant increase after the holiday. In addition, some downstream processing enterprises prefer to purchase directly from smelters to ensure bill compliance, diverting some spot demand from the trading market. Supply side, first, diesel shortages in Africa have caused hindered transportation in logistics, delaying the pace of imported cargo arrivals at ports, resulting in tight imported copper supply in the short term; second, according to SMM, five domestic smelters will enter maintenance in May, which will also reduce the circulation of domestically produced spot cargo. Overall, against the backdrop of tightened spot circulation due to hindered imports and domestic maintenance, suppliers have a strong willingness to hold prices firm, and Shanghai spot copper premiums are expected to hold up well today.
(2) Guangdong: On April 30, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 320 yuan/mt, flat from the previous trading day; standard-quality copper was quoted at a premium of 240 yuan/mt, flat from the previous trading day; SX-EW copper was quoted at a premium of 180 yuan/mt, flat from the previous trading day. The average price of Guangdong #1 copper cathode was 101,575 yuan/mt, up slightly by 35 yuan/mt from the previous trading day; the average price of SX-EW copper was 101,475 yuan/mt, up 35 yuan/mt from the previous trading day. Overall, pre-holiday spot trades were sluggish, but spot quotes remained firm. Attention should be paid to inventory buildup during the Labour Day holiday.
(3) Imported copper: On April 30, the average warrant price was flat from the previous trading day at $64/mt (price range $56-74/mt); the average B/L price was flat from the previous trading day at $61/mt (price range $51-73/mt); the average EQ copper (CIF B/L) price was flat from the previous trading day at $31/mt (price range $20-42/mt). Quotes referenced cargoes arriving from late April to early-to-mid May.
(4) Secondary copper: On April 30 at 11:30, the futures closing price was 101,300 yuan/mt, down 450 yuan/mt from the previous trading day. The average spot premiums were 60 yuan/mt, unchanged from the previous trading day. On April 30, copper scrap prices remained unchanged MoM. The copper scrap sales sentiment index fell to 2.44, and the purchase sentiment index rebounded to 2.19. The price difference between copper cathode and copper scrap was 1,025 yuan/mt, down 450 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 640 yuan/mt. According to an SMM survey, on the last trading day before the holiday, suppliers' willingness to sell copper scrap rebounded slightly, but downstream scrap utilization enterprises showed no purchase willingness. Some enterprises indicated that due to insufficient invoices, they had decided to arrange for workers to take 2-3 days off.
Prices: Macro perspective, the US Secretary of Defense confirmed the validity of the US-Iran ceasefire agreement, and Trump also indicated progress with Iran, easing market concerns over further escalation of geopolitical conflicts in the Middle East. Fundamentals side, supply side, arrivals of imported copper decreased, domestic supply arrivals remained stable, and combined with suppliers' weak willingness to sell, overall spot circulation in the market was tight. Demand side, as downstream pre-holiday stockpiling wound down, purchase sentiment turned mediocre, and overall spot trades were relatively lackluster. Inventory side, as of Thursday, April 30, SMM social inventory of copper cathode in major regions nationwide decreased by 5,600 mt WoW from the previous Thursday. Overall, copper prices were expected to show a narrow-range fluctuating trend that held 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 use this as a substitute for independent judgment. Any decisions made by clients are not related to SMM.]