Low-priced supply concentrated in transactions, with SHFE copper spot premiums continuing to be suppressed [SMM Shanghai spot copper]

SMM News on June 4:

        Today, spot prices of SMM #1 copper cathode against the current-month 2506 contract were reported at a premium of 40-220 yuan/mt, with an average quoted premium of 130 yuan/mt, down 90 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 78,350-78,620 yuan/mt. In the morning session, SHFE copper prices fluctuated mainly around 78,380 yuan/mt, touching 78,400 yuan/mt multiple times. After briefly surging to 78,480 yuan/mt in the morning, prices pulled back. The price spread between futures contracts for the next month narrowed from BACK 200 yuan/mt to 150 yuan/mt during the day. The import loss for current-month SHFE copper exceeded 1,300 yuan/mt. Close attention should be paid to the export trends of smelters.

        During the day, the price spread between brands continued to widen. High-quality copper, such as Jinchuan and Guixi, was in extremely tight supply, with premiums of 200-250 yuan/mt in the morning session. Prices of Xiangguang, Lufang, JCC, and Polish large plates remained high due to trade circulation demand, with premiums of 180-200 yuan/mt and scarce supply. Imported Jinguan, Jinfeng, as well as domestic brands such as Tiefeng, Zhongjin, Yuguang, Zhongtiaoshan PC, and Dajiang PC, were initially quoted at premiums of 70-100 yuan/mt. Subsequently, as market transactions weakened, the transaction center continued to decline, with transactions concluded at premiums of 30-50 yuan/mt.

        Looking ahead to tomorrow, with the continued availability of imported supply and the current guidance of narrowing price spreads between futures contracts, premiums are expected to still have downside room tomorrow. Attention should be paid to whether the parity price will be broken.