Downstream Consumption Weakened During the Day, Spot Premiums Edged Down Slightly [SMM Shanghai Spot Copper]

SMM, February 25:

Today, spot #1 copper cathode against the SHFE 2503 contract was quoted at a discount of 140-100 yuan/mt, with an average price at a discount of 120 yuan/mt, down 15 yuan/mt from the previous trading day. Standard-quality copper was traded at 76,820-77,010 yuan/mt, and high-quality copper at 76,840-77,040 yuan/mt. The SHFE copper 2503 contract briefly dipped to 76,930 yuan/mt during the morning session before rebounding to fluctuate around 77,070 yuan/mt. The price spread between the SHFE copper 2503 and 2504 contracts ranged from a backwardation of 110 to 150 yuan/mt.

Spot trading in the early market was sluggish, with weak downstream purchasing sentiment. At the beginning of the session, suppliers quoted mainstream standard-quality copper at a discount of 130-120 yuan/mt, and high-quality copper at a discount of 120-80 yuan/mt. Downstream buying interest was weak, and overall demand was poor as most processing enterprises opted for long-term contracts over spot orders due to the approaching month-end. During the main trading session, mainstream standard-quality copper was traded at a discount of 140-130 yuan/mt, and high-quality copper at a discount of 120-100 yuan/mt. Hydro copper was quoted at a discount of around 200 yuan/mt. By 11 a.m., spot premiums in the Shanghai region stabilized, while actual transaction prices in surrounding areas continued to decline.

Market buying interest remained subdued during the day, but it was observed that the SHFE copper 2405 contract had shifted to a backwardation structure. Suppliers, anticipating a turning point in inventory, were not in a hurry to sell. Spot premiums are expected to stabilize tomorrow.