Falling Copper Prices Spurred a Recovery in Demand; SHFE Copper Spot Discounts Continued to Rise [SMM Shanghai Spot Copper]

SMM March 9 News:

Today, SMM #1 copper cathode spot prices against the current-month 2603 contract were quoted at a discount of 100 yuan/mt to a premium of 10 yuan/mt, with the average at a discount of 45 yuan/mt. In early trading, the SHFE copper 2603 contract opened lower with a gap and then rallied to rebound. After the open, prices quickly dipped to 98,460 yuan/mt, then fluctuated between 98,600 yuan/mt and 99,000 yuan/mt. Prices then surged rapidly, touched a high of 100,370 yuan/mt, and dropped back slightly; as of the close, prices were 99,830 yuan/mt. The inter-month contango price spread between futures contracts ranged from 310 yuan/mt to 170 yuan/mt, and the import profit margin for the SHFE copper current-month contract ranged from a loss of 350 yuan/mt to 210 yuan/mt.

Intraday, the sales sentiment for copper cathode in Shanghai was 2.92, up 0.06 MoM, and purchase willingness was 2.82, up 0.1 MoM. . At the start of the morning session, suppliers quoted standard-quality copper at a discount of 110 yuan/mt to a discount of 20 yuan/mt, with Poland (plate), SUMIKO-N, JCC, etc. quoted at a discount of 40 yuan/mt to a discount of 20 yuan/mt, and Zhongtiaoshan, Jinchuan ISA, Zhongjin, Yuguang, Tiefeng, Jinchuan isa Yongchang, etc. quoted at a discount of 110 yuan/mt to a discount of 80 yuan/mt; high-quality copper such as Guixi and Jinchuan (plate) was quoted at parity to a premium of 50 yuan/mt; registered SX-EW copper cargoes were scarce, with only some Myanmar cargoes circulating, quoted at a discount of 100 yuan/mt; non-registered copper was quoted at a discount of 180 yuan/mt to a discount of 150 yuan/mt. Entering the second time window, suppliers showed strong willingness to hold prices firm and further raised standard-quality copper prices. Poland (plate) was traded at a discount of 20 yuan/mt; Dajiang PC, Jinchuan isa, Jinguan, Jinxin, Tongguan, etc. were traded successively at quoted discounts of 80 yuan/mt to 40 yuan/mt, while Zhongjin, Yuguang, Zijin, etc. were traded at discounts of 80 yuan/mt to 70 yuan/mt; high-quality copper Jinchuan (plate) was traded at parity, and registered SX-EW copper from Myanmar was quoted at a discount of 90 yuan/mt.

Looking ahead to tomorrow, with the delivery period approaching, Shanghai spot copper spot discounts are expected to continue narrowing steadily. Intraday, suppliers’ willingness to hold prices firm strengthened, and quotes in the second time window were generally raised, with the trading center moving up. From the perspective of market drivers, the continued decline in copper prices kept stimulating downstream buying the dip, with both buying and selling sentiment rebounding and order activity improving, providing support for spot. Supply side, domestic copper and previously price-locked imported cargoes continued to arrive, social inventory remained at a high level, and overall circulation was relatively ample, placing some constraints on the room for discount recovery. Overall, spot discounts are expected to maintain a steady upward trend tomorrow.