SMM March 13 News:
Today, #1 copper cathode spot prices against the SHFE 2503 contract were quoted at a discount of 10 yuan/mt to a premium of 40 yuan/mt, with an average premium of 15 yuan/mt, up 5 yuan/mt from the previous trading day. Standard-quality copper traded at 79,420–79,750 yuan/mt, while high-quality copper traded at 79,450–79,780 yuan/mt. The SHFE copper 2503 contract jumped initially and then pulled back during the morning session, rising from around 79,400 yuan/mt at the opening to test 79,770 yuan/mt before declining and hitting 79,220 yuan/mt by the session close. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated between a discount of 30 yuan/mt and 80 yuan/mt.
During the day, copper prices continued to rise, and spot prices for high-quality copper kept climbing, but market transactions remained sluggish. At the opening, suppliers quoted mainstream standard-quality copper at a discount of 20 yuan/mt to parity, and high-quality copper at a premium of 10–30 yuan/mt. Suppliers held a tight supply outlook for smelters in the future. During the main trading session, mainstream standard-quality copper was traded at a discount of 10 yuan/mt to parity, while high-quality copper was traded at a premium of 20–30 yuan/mt. Hydro copper was traded at a discount of around 50 yuan/mt. By 11:00 a.m., market quotations stabilized, and some buyers restocked at lower prices, pushing up the bottom of spot premiums.
According to SMM, there was a slight inventory buildup in Shanghai and Jiangsu this week, while domestic destocking was mainly concentrated in Guangdong. High copper prices pressured downstream purchase willingness. However, due to the continued exports by domestic smelters and the reduced volume of imports, the overall domestic destocking trend is expected to remain unchanged. Spot premiums are expected to rise further tomorrow.
