Declining Copper Prices Activated Some Buying, Shanghai Spot Copper Premiums Remained Under Pressure [SMM Shanghai Spot Copper]

SMM May 18 News:

Today, SMM #1 copper cathode spot prices against the current month 2606 contract were quoted at a discount of 80 yuan/mt to a discount of 10 yuan/mt, with an average quote at a discount of 45 yuan/mt. In the morning session, the SHFE copper 2606 contract opened lower, rebounded, and then moved sideways. The opening price was 104,440 yuan/mt. After opening, prices continued to decline, hitting a low of 103,400 yuan/mt, before stabilizing and rebounding, fluctuating between 104,100 yuan/mt and 104,450 yuan/mt, with a closing price of 104,250 yuan/mt. The inter-month price spread between futures contracts ranged from Contango 40 yuan/mt to Backwardation 30 yuan/mt. The SHFE copper import profit margin against the 2606 contract ranged from a loss of 210 yuan/mt to a loss of 80 yuan/mt.

Intraday, the selling sentiment for copper cathode in the Shanghai region was 2.72, up 0.12 WoW, and the purchasing sentiment was 2.67, up 0.12 WoW. Historical data can be queried in the database. At the start of the morning session, suppliers quoted standard-quality copper at a discount of 80 yuan/mt to a discount of 40 yuan/mt, with SPCC-ILO, Lufang, Xiangguang, and JCC quoted at a discount of 60 yuan/mt to a discount of 40 yuan/mt, and Jinguan, Zhongtiaoshan, Xikuang, Yuguang, and Jinchuan ISA Yongchang quoted at a discount of 80 yuan/mt to a discount of 50 yuan/mt. High-quality copper Jinchuan high-purity was quoted at a discount of 20 yuan/mt. Entering the second trading session, prices saw no significant changes. Standard-quality copper Tiefeng and Xikuang were traded at a discount of 80 yuan/mt to a discount of 70 yuan/mt. High-quality copper Jinchuan high-purity and Jintun large plates were traded at a discount of 20 yuan/mt. Registered SX-EW copper was scarce, with only some Myanmar-origin material in circulation, hence quotes remained firm at a discount of 100 yuan/mt to a discount of 90 yuan/mt. Non-registered copper was traded at a discount of 160 yuan/mt to a discount of 140 yuan/mt.

Intraday, SHFE copper prices edged down, effectively activating some downstream buying interest. According to SMM, orders from some downstream processing enterprises increased by approximately 30% compared to the previous trading day, with some transactions concentrated around 103,500 yuan/mt, indicating that current price levels still held certain appeal for end-users. Inventory side, SMM data showed that social inventory in the Shanghai region recorded 181,800 mt, down 2,800 mt from last Thursday. Inventory in the Jiangsu region was 38,100 mt, up slightly by 1,200 mt from last Thursday. Overall, a mild destocking trend was observed, with inventory pressure easing marginally. From market performance, suppliers' quotes remained basically stable, and the transaction center showed no significant downward shift. Overall, supported by demand release stimulated by copper price pullbacks and mild destocking, spot Shanghai copper prices against the 2606 contract are expected to remain at a discount tomorrow, continuing a generally stable trend.