Copper Prices Closed Higher Overnight as Bears Reduced Positions; Spot Discounts, Fluctuating at Highs [SMM Copper Morning Meeting Minutes]

Wednesday, June 3, 2026
Futures: Overnight, LME copper opened at $13,954.5/mt, dipped to $13,941/mt early in the session, then the price center rose, reaching $14,056/mt before closing at $13,983.5/mt, up 0.75%. Trading volume reached 22,000 lots, and open interest stood at 273,000 lots, down 242 lots from the previous trading day, indicating bears reducing positions. Overnight, the most-traded SHFE copper 2607 contract opened at 106,720 yuan/mt, dipped to 106,660 yuan/mt at the open, then the price center shifted upward, touching a high of 107,420 yuan/mt before fluctuating at highs and closing at 107,100 yuan/mt, up 0.45%. Trading volume reached 50,000 lots, and open interest stood at 191,000 lots, down 420 lots from the previous trading day, indicating bears reducing positions.
[SMM Copper Morning Meeting Summary] News:
(1) Konkola Copper Mines (KCM), a subsidiary of Vedanta Resources, said on Tuesday that it had initiated a 60-day maintenance plan for its Nchanga smelter in Zambia. KCM stated that the maintenance aimed to improve operational efficiency, equipment reliability, and long-term production performance. According to Zambia's Ministry of Mines, the company's copper production in 2025 was 80,215 mt. This planned shutdown is part of the company's broader modernization strategy aimed at advancing its capacity toward the target of 300,000 mt per year by 2030. This aligns with Zambia's national goal of increasing the country's copper production from 890,346 mt in 2025 to 3 million mt by 2031.
Spot:
(1) Shanghai: On June 2, the SHFE copper 2606 contract showed a pattern of retreating after a rapid rise before stabilizing in the morning session. The opening price was 105,620 yuan/mt. After the open, prices quickly surged to a high of 106,390 yuan/mt, then pulled back to 105,640 yuan/mt. After stabilizing, prices rebounded slightly, with the closing price at 105,860 yuan/mt. The inter-month Contango price spread ranged between 160 yuan/mt and 90 yuan/mt. The import profit margin for SHFE copper against the 2606 front-month contract ranged from a loss of 640 yuan/mt to a loss of 570 yuan/mt. Looking ahead to today, the copper price center is shifting upward, downstream enterprise consumption is weakening, but as the inter-month Contango price spread widens, suppliers' willingness to ship to delivery warehouses has increased. Suppliers are holding prices firm and holding back from selling, and available low-priced cargo is expected to tighten, providing some support for spot discounts. Affected by rising copper prices, the price difference between copper cathode and copper scrap has widened, driving spot discounts for non-registered copper to widen further. Overall, under the influence of high copper prices and widening inter-month spreads, Shanghai spot copper is expected to maintain discount levels against the 2606 contract today.
(2) Guangdong: On June 2, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 60 yuan/mt, down 10 yuan/mt from the previous trading day; standard-quality copper was quoted at parity, unchanged from the previous trading day; SX-EW copper was quoted at a discount of 60 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 105,960 yuan/mt, up 1,115 yuan/mt from the previous trading day. The average price of SX-EW copper was 105,870 yuan/mt, up 1,130 yuan/mt from the previous trading day. Overall, copper prices rose but suppliers were unwilling to lower prices, and market trading activity was poor.
(3) Imported copper: On June 2, the average warrant price fell $2/mt from the previous trading day to $67/mt (price range 63-71 $/mt); the average B/L price fell $2/mt from the previous trading day to $68/mt (price range 64-72 $/mt); the average EQ copper (CIF B/L) price fell $2/mt from the previous trading day to $37/mt (price range 32-42 $/mt), with quotes referencing cargoes arriving in June and early July.
(4) Secondary copper: On June 2 at 11:30, the futures closing price was 105,860 yuan/mt, up 1,110 yuan/mt from the previous trading day. The average spot premiums were -70 yuan/mt, down 10 yuan/mt from the previous trading day. Copper scrap prices rose 500 yuan/mt MoM. The copper scrap sales sentiment index remained flat at 2.78, while the purchasing sentiment index rose to 2.28. The price difference between copper cathode and copper scrap was 2,773 yuan/mt, up 541 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,380 yuan/mt. According to an SMM survey, as copper prices surged, copper scrap suppliers naturally showed strong selling sentiment, while downstream secondary copper rod enterprises did not exhibit fear of high prices but instead actively sought transactions. Some secondary copper rod enterprises indicated they were bullish on subsequent copper prices and were therefore willing to purchase at high prices.
Prices: On the macro front, the US adjusted tariffs on certain copper, aluminum, and steel products but did not mention copper cathode. The market still held expectations of a tariff hike on copper cathode, which boosted copper prices. Additionally, Iran stated that US-Iran communications had been interrupted for several days. Although the US denied this, the market remained cautiously watchful regarding US-Iran negotiations. On the fundamentals front, supply side, high-quality copper sources were scarce and overall spot cargo circulation tightened marginally; demand side, rising copper prices severely suppressed downstream purchasing sentiment, with overall demand remaining subdued. Overall, copper prices are expected to move sideways at high levels today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make prudent decisions and not use this as a substitute for independent judgment. Any decisions made by clients are not related to SMM.]