SMM November 11 news:
Today, SMM #1 copper cathode spot prices against the SHFE copper 2611 contract were quoted at premiums of 550-1,400 yuan/mt, with an average premium of 975 yuan/mt, down 725 yuan/mt from the previous trading day. In early trading, the SHFE copper 2611 contract opened lower and moved higher, drifting higher overall. After the open, prices briefly dipped to around 106,800 yuan/mt, then quickly rebounded to around 107,300 yuan/mt. Copper prices then consolidated, with the futures center gradually rising. Approaching midday, the upward momentum accelerated, peaking at around 107,580 yuan/mt before pulling back slightly, with the morning session closing at 107,450 yuan/mt. The backwardation between adjacent months stood at 1,740-1,970 yuan/mt, and the import profit margin for SHFE copper against the 2611 contract was between a profit of 620 yuan/mt and 880 yuan/mt.
During the day, the selling sentiment for copper cathode in the Shanghai region was 3.85, down 0.04 MoM, while the purchasing sentiment was 2.78, up 0.07 MoM. Historical data can be queried in the database. At the start of the morning session, suppliers quoted premiums of 1,000-1,500 yuan/mt, with non-registered copper quoted at premiums of 700-900 yuan/mt. Subsequently, suppliers cut their quotes sharply and repeatedly, with JCC and Lufang quoted at a premium of 950 yuan/mt, and Dajiang PC, Tiefeng, and Jinfeng quoted at premiums of 850-900 yuan/mt. In the second session, some suppliers continued to offload cargoes aggressively, with standard-quality copper quoted at premiums of 500-550 yuan/mt, and non-registered copper traded at premiums of 300-450 yuan/mt.
Looking ahead to tomorrow, the backwardation between adjacent months widened further during the day, and with the delivery of the SHFE copper 2611 contract approaching, some suppliers showed stronger willingness to sell, cutting quotes sharply and repeatedly to facilitate transactions. Standard-quality copper quotes fell from around a premium of 1,000 yuan/mt in early trading to around 500-550 yuan/mt, with the spot premium center shifting notably lower. Demand side, despite the sharp and sustained pullback in spot premiums, the current high copper prices combined with the wide backwardation continued to exert strong pressure on downstream purchases. Production halts and production cuts at some processing enterprises have yet to show significant improvement, and actual purchase willingness remained weak, with overall market transactions relatively sluggish. Supply side, some imported copper that had been delayed in arriving at ports gradually replenished the market, and with the import profit window open, the tightness of available cargoes in the market eased somewhat compared with the earlier period. Notably, as of the midday close, open interest in the SHFE copper 2611 contract remained at approximately 22,000 lots, while SHFE registered warrants stood at only 2,520 mt. With delivery approaching, a significant gap remains between nearby-month open interest and deliverable warrants, posing elevated risks of fluctuations in the backwardation between adjacent months. Overall, the active selling by suppliers and weak downstream demand jointly pressured spot premiums. Spot premiums in the Shanghai region are expected to remain under pressure tomorrow, or may continue to pull back slightly.
![Market enters wait-and-see mode, with sluggish activity during the week [SMM Yangshan spot copper]](https://imgqn.smm.cn/usercenter/eFYDl20251217171712.jpg)
