High Prices Continue to Suppress Consumption, Shanghai Spot Copper Premiums Widen Further [SMM Shanghai Spot Copper]

Published: May 25, 2026 14:16

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[SMM Shanghai Spot Copper] Looking ahead to tomorrow, copper prices edged up during the day, market trading cooled notably, downstream enterprises mainly made just-in-time procurement, and demand was unlikely to see significant increases. The inter-month Contango price spread between futures contracts widened slightly, and suppliers showed some willingness to hold prices firm. In addition, according to SMM, available spot copper in Jiangsu was relatively tight, with some downstream enterprises reporting difficulty in finding low-priced supplies. Overall, amid high copper prices suppressing demand and the slightly widening Contango price spread between futures contracts, Shanghai spot copper is expected to maintain a discount against the 2606 contract tomorrow, potentially widening slightly.

SMM May 25 News:

Today, SMM #1 copper cathode spot prices against the current month 2606 contract were quoted at a discount of 150 yuan/mt to a premium of 30 yuan/mt, with an average quote at a discount of 60 yuan/mt. In the morning session, the SHFE copper 2606 contract opened higher with a gap and then edged down, with an opening price of 104,950 yuan/mt. After opening, prices quickly rose to 105,820 yuan/mt, then fluctuated downward, touching a low of 105,330 yuan/mt. By the close, prices slightly rebounded, with a closing price of 105,480 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 140 yuan/mt to 110 yuan/mt. LME copper was closed today.

Intraday, the selling sentiment for copper cathode in Shanghai was 2.64, down 0.03 MoM, and the procurement sentiment was 2.56, down 0.09 MoM. Historical data can be found in the database. At the start of the morning session, suppliers quoted standard-quality copper at a discount of 110-100 yuan/mt, with Lufang, Xiangguang, and JCC quoted at a discount of 100 yuan/mt, and ONSAN, Zhongtiaoshan, Jinfeng, and Zijin quoted at a discount of 110-100 yuan/mt. Subsequently, suppliers quickly lowered prices, with Lufang, Xiangguang, and JCC quoted at a discount of 120-100 yuan/mt, Jinchuan ISA, Tiefeng, Jinfeng, Zijin, and Dajiang HS quoted at a discount of 140-120 yuan/mt, and Jinguan, Jinxin, Jintun PC, and Jinfeng quoted at a discount of 100 yuan/mt for ex-factory pickup. High-quality copper sources were scarce, so quotes remained firm, with Jinchuan high-purity and Jintun large cathode quoted at a premium of 20 yuan/mt to parity, and Guiye quoted at a premium of 30 yuan/mt. Entering the second session, suppliers continued to lower prices on some sources, with standard-quality copper ONSAN, Tiefeng, and Dajiang HS quoted at a discount of 150 yuan/mt, and non-registered copper transacted at a discount of 280-260 yuan/mt.

Looking ahead to tomorrow, intraday copper prices edged up, market transactions notably weakened, and downstream enterprises mainly made just-in-time procurement, with demand unlikely to show significant improvement. The inter-month Contango price spread between futures contracts slightly widened, and suppliers showed some willingness to hold prices firm. In addition, according to SMM, available spot cargo in Jiangsu was tight, with some downstream enterprises reporting difficulty in finding low-priced sources. Overall, given high copper prices suppressing demand and the slight widening of the Contango price spread between futures contracts, Shanghai spot copper against the 2606 contract is expected to remain at a discount tomorrow, or widen slightly.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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