Hayland Copper Approved by U.S. Government, Overnight LME Copper and SHFE Copper Both Closed Lower [SMM Copper Morning Meeting Minutes]

2026.4.8 Wednesday
Futures: Overnight, LME copper opened at $12,398/mt, touching a high of $12,398/mt at the start of the session before the price center fluctuated downward to a low of $12,280/mt, then moved sideways and ultimately closed at $12,328.5/mt, down 0.16%, with trading volume at 16,000 lots and open interest at 294,000 lots, down 473 lots from the previous trading day, mainly reflecting bulls reducing positions. Overnight, the most-traded SHFE copper 2605 contract opened at 96,040 yuan/mt, touching a high of 96,300 yuan/mt at the start of the session before the price center shifted downward to a low of 95,540 yuan/mt, then moved sideways and ultimately closed at 95,850 yuan/mt, down 0.74%, with trading volume at 33,000 lots and open interest at 177,000 lots, up 1,074 lots from the previous trading day, mainly driven by bears adding positions.
[SMM Copper Morning Meeting Summary] News:
(1) The US government has listed Highland Copper Company as a contributor to expanding domestic copper supply, highlighting the growing strategic importance of this Canadian mineral company. Last week, Trump signed a document under Section 232 of the Trade Expansion Act of 1962, adjusting ad valorem tariffs on imported steel, aluminum, copper, and related derivative products starting from the 6th. This move reduced tariffs on derivatives and simplified compliance requirements. White House documents showed that Highland Copper, Ivanhoe Electric, Rio Tinto, and Wieland were listed together as part of broader efforts to expand US mining, smelting, and processing capacity. This recognized the company's Copperwood project as being at the center of a broader policy shift to secure domestic supply of critical minerals. The US is relying on tariffs and financing tools to reduce dependence on imports and enhance industrial resilience. Supported by a 2023 feasibility study, Highland Copper is advancing the Copperwood project into a critical decision-making stage. The feasibility study indicated a mine life of approximately 11 years, with annual production of approximately 64.6 million pounds of copper and 107,000 ounces of silver. This fully permitted project was designed as an underground room-and-pillar mining operation, processing approximately 6,800 mt of ore per day.
Spot:
(1) Shanghai: On April 7, the SHFE copper 2604 contract opened with a sharp jump in the morning session before pulling back quickly, then stabilized and rose rapidly, followed by sideways movement, with prices pulling back toward the close. The opening price was 96,240 yuan/mt, after which prices jumped to 96,680 yuan/mt, then quickly pulled back to 96,220 yuan/mt, stabilized, and rose rapidly to a high of 96,950 yuan/mt, then fluctuated between 96,650 yuan/mt and 96,920 yuan/mt. Near the close, prices pulled back somewhat, with a closing price of 96,610 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 70 yuan/mt to 10 yuan/mt, and the SHFE copper near-month import profit margin ranged from a loss of 100 yuan/mt to a profit of 20 yuan/mt. Today, the Shanghai spot copper market is expected to remain under pressure. Supply side, some suppliers made distressed sales during the session, but the discount did not widen significantly. Going forward, suppliers' willingness to hold prices firm is strengthening, with some enterprises controlling the pace of shipments, providing support for spot prices. Available supplies in Jiangsu were tight, further reinforcing suppliers' willingness to hold prices firm. Demand side, on the first trading day after the Qingming Festival, downstream enterprises showed strong enthusiasm for resuming operations, with procurement sentiment recovering and just-in-time procurement providing support. Overall, under the combined effect of suppliers holding prices firm and downstream restocking, Shanghai spot copper prices against the 2604 contract are expected to remain at a discount today.
(2) Guangdong: On April 7, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 170 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 95 yuan/mt, down 25 yuan/mt from the previous day; SX-EW copper was quoted at a premium of 40 yuan/mt, down 20 yuan/mt from the previous day. The average price of Guangdong #1 copper cathode was 96,945 yuan/mt, up 655 yuan/mt from the previous trading day; the average price of SX-EW copper was 96,260 yuan/mt, up 665 yuan/mt from the previous trading day. Overall, rising copper prices dampened downstream restocking appetite, and trading activity was lukewarm.
(3) Imported copper: On April 7, the average warrant price fell $2/mt from the previous trading day to $63/mt (price range: $58-68/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 fell $1/mt from the previous trading day to $33/mt (price range: $26-40/mt), with quotes referencing cargoes arriving from mid-April to early May.
(4) Secondary copper: On April 7 at 11:30, the futures closing price was 96,630 yuan/mt, up 400 yuan/mt from the previous trading day; the average spot premium was -25 yuan/mt, up 10 yuan/mt from the previous trading day. On April 8, copper scrap prices rose 300 yuan/mt MoM; the copper scrap sales sentiment index rose to 2.49; the procurement sentiment index rose to 2.35; the price difference between copper cathode and copper scrap was -62 yuan/mt, up 76 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,100 yuan/mt. According to an SMM survey, copper prices retreated after a rapid rise during the day. In the afternoon, copper scrap suppliers showed weakened shipment sentiment. Secondary copper rod enterprises indicated that copper prices lacked upward momentum, and if copper prices fell the next day, they would consider increasing raw material procurement volume.
Prices: Macro perspective, Trump agreed to a two-week pause on strikes against Iran, and Iran also accepted the two-week ceasefire proposal. Market risk appetite warmed, but the market remained cautious about the sustainability of the ceasefire agreement. Fundamentals side, supply side, domestic arrivals decreased slightly, but imported sources continued to arrive, and overall market circulating supply stabilized; demand side, activity slowed slightly compared to the previous period, dominated by just-in-time procurement. Inventory side, as of Tuesday, April 7, SMM copper inventories in major regions nationwide decreased 14.98% WoW, with all regions continuing destocking. Overall, influenced by easing macro sentiment, 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 use this as a substitute for independent judgment. Any decisions made by clients are not related to SMM.]