SMM May 22 update:
Today, SMM #1 copper cathode spot prices against the current-month 2606 contract were quoted at a discount of 110 yuan/mt to a premium of 30 yuan/mt, with an average quote at a discount of 40 yuan/mt. During the morning session, the SHFE copper 2606 contract showed a volatile upward trend, opening at 103,950 yuan/mt. After opening, prices edged up before pulling back, fluctuating between 104,170 yuan/mt and 104,370 yuan/mt. Prices then rose with multiple pullbacks, reaching a high of 104,700 yuan/mt, with a closing price of 104,480 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 110 yuan/mt to 80 yuan/mt. The SHFE copper import profit margin against the 2606 contract ranged from a loss of 400 yuan/mt to a loss of 330 yuan/mt.
Intraday, the selling sentiment for copper cathode in Shanghai was 2.67, down 0.05 MoM, and the procurement sentiment was 2.65, up 0.04 MoM. Historical data can be accessed in the database. At the start of the morning session, suppliers quoted standard-quality copper at a discount of 110 yuan/mt to a discount of 80 yuan/mt, with SPCC-ILO, Lufang, Xiangguang, and JCC quoted at a discount of 90 yuan/mt to a discount of 80 yuan/mt, and ONSAN, Zhongtiaoshan, Yuguang, and Dajiang HS quoted at a discount of 110 yuan/mt to a discount of 90 yuan/mt. Jinguan, Jinxin, and Jintun PC were quoted at a discount of 70 yuan/mt ex-factory. High-quality copper sources were scarce, so quotes remained firm, with Jinchuan high-purity and Jintun (plate) quoted at a premium of 20 yuan/mt. Entering the second session, suppliers continued to lower prices on some sources. Standard-quality copper ONSAN and Zijin were quoted at a discount of 130 yuan/mt to a discount of 120 yuan/mt. High-quality copper Jinchuan (plate) and Jintun (plate) were traded at parity to a premium of 20 yuan/mt, and non-registered copper was traded at a discount of 240 yuan/mt to a discount of 200 yuan/mt.
Looking ahead to next week, intraday, some downstream processing enterprises had restocking demand, and procurement sentiment rebounded slightly, but constrained by high copper prices, actual procurement volume saw limited growth. From market performance, suppliers continued to lower quotes during the second session, and their willingness to sell increased somewhat, but suppressed by weakening consumption demand, actual transactions remained sluggish. Overall, Shanghai spot copper prices against the 2606 contract are expected to remain at a discount next week.
