Pre-holiday Stockpiling Emerges, Early Morning Spot Copper Transactions Perform Well

Today, spot #1 copper cathode against the current month 2406 contract was quoted at a discount of 60-40 yuan/mt, with an average price at a discount of 50 yuan/mt, down 5 yuan/mt from the previous trading day. Standard-quality copper transaction prices ranged from 80,890 to 81,300 yuan/mt, while high-quality copper transaction prices ranged from 80,900 to 81,310 yuan/mt. The SHFE 2406 copper contract surged in the early session and fluctuated around 81,000 yuan/mt, falling t o 80,920 yuan/mt during the session. The contango between the SHFE 2406 and 2407 contracts fluctuated between 290-250 yuan/mt.

Due to pre-Dragon Boat Festival stockpiling, intraday transactions were frequent, and outflows from warehouses increased. In the early morning session, mainstream sellers quoted standard-quality copper at a discount of 50-40 yuan/mt. High-quality copper such as CCC-P and JNMC were quoted at a discount of 30-20 yuan/mt for next month's invoices. During the main trading period, mainstream standard-quality copper for next month's invoices was quoted at a discount of 60-40 yuan/mt with some transactions, while high-quality copper such as CCC-P and JNMC were quoted at a discount of 50-40 yuan/mt with some transactions. Hydro copper such as MV was quoted at a discount of 170-150 yuan/mt. Some low-price sources were quickly snapped up. By 11:00 AM, the market atmosphere gradually cooled down.

Today, copper prices slightly rebounded, but spot consumption did not show weakness due to pre-Dragon Boat Festival stockpiling demand. According to the SMM survey, smelters' finished product inventories were reduced earlier, but with no significant change in the recent contango structure, social inventories remained high. It is expected that spot premiums will remain stable tomorrow.