SMM, February 17:
Today, spot premiums for #1 copper cathode against the front-month 2502 contract were quoted at 80-160 yuan/mt, with an average premium of 120 yuan/mt, up by 95 yuan/mt from the previous trading day. Standard-quality copper traded at 77,130-77,340 yuan/mt, while high-quality copper traded at 77,150-77,370 yuan/mt. The SHFE copper 2502 contract initially jumped slightly in the morning session before pulling back, fluctuating around 77,100 yuan/mt and testing 77,250 yuan/mt during the session. The SHFE copper 2503 contract also showed relatively small fluctuations, hovering around 77,300 yuan/mt. The price spread between the SHFE copper 2502 and 2503 contracts in the morning session fluctuated in a contango of 180-220 yuan/mt.
Today marked the last trading day for the SHFE copper 2502 contract, with no significant structural fluctuations observed in the early market, and spot market liquidity remained sluggish. At the beginning of the session, mainstream standard-quality copper against the 2503 contract was quoted at a discount of 120-100 yuan/mt, while high-quality copper such as CCC-P and Jinchuan (plate) was quoted at a discount of 80-70 yuan/mt. At this time, the price spread between the 2502 and 2503 contracts fluctuated around a contango of 200-220 yuan/mt. Standard-quality copper against the SHFE copper 2502 contract showed premiums of 100-120 yuan/mt, while high-quality copper showed premiums of 120-160 yuan/mt.
During the mainstream trading session, the inter-month price spread fluctuated slightly, and some suppliers lowered their offers due to weak transactions. Mainstream standard-quality copper against the 2502 contract was quoted at a discount of 140-120 yuan/mt, with some transactions completed. High-quality copper such as CCC-P against the 2412 contract was quoted at a discount of 120-100 yuan/mt, with some transactions completed. Downstream buying interest was also not active. At this time, the price spread between the 2502 and 2503 contracts remained largely unchanged. Standard-quality copper against the SHFE copper 2501 contract showed premiums of 80-100 yuan/mt, while high-quality copper showed premiums of 100-140 yuan/mt. According to SMM's price assessment methodology for #1 copper cathode, SMM consistently quotes based on the front-month contract.
According to SMM, inventory buildup continued in the Shanghai region over the weekend. The high contango structure attracted active buying from suppliers and downstream buyers, leading to a significant increase in buying volumes for the SHFE copper 2502 contract compared to the 2501 contract. As a result, the spot market remained relatively inactive. Spot premiums against the SHFE copper 2503 contract are expected to return to discounts tomorrow.
