Teck Resources Warned of Rising Costs, LME Copper Fluctuated and Closed Lower Overnight [SMM Copper Morning Meeting Minutes]

2026.4.27 Monday
Futures: Last Friday evening, LME copper opened at $13,239.6/mt, dipping to $13,220/mt early in the session before swinging wildly higher to touch $13,336/mt. Copper prices then shifted lower in center, ultimately closing at $13,289/mt, down 0.16%, with trading volume at 17,000 lots and open interest at 277,000 lots, up 1,004 lots from the previous trading day, indicating bears adding positions. Last Friday evening, the most-traded SHFE copper 2606 contract opened at 102,650 yuan/mt, touching a low of 102,600 yuan/mt early in the session before the price center shifted higher to reach 103,120 yuan/mt, then fluctuated downward, ultimately closing at 102,780 yuan/mt, down 0.03%, with trading volume at 39,500 lots and open interest at 211,000 lots, up 249 lots from the previous trading day, indicating bears adding positions.
[SMM Copper Morning Meeting Summary] News:
(1) Teck Resources warned that rising diesel and freight costs could increase spending at its Chilean copper mining operations during Q2 as global supply tightens. The Canadian mining company said its Chilean operations rely on imported diesel and face higher fuel and transportation costs due to supply disruptions related to the Strait of Hormuz, although no severe shortages are expected. "We expect freight rates to continue rising in Q2 2026, with explosives costs also increasing accordingly. We will continue to closely monitor developments, such as potential product export bans by major supplying countries, which could further disrupt the market," the company said. This warning highlights broader supply chain pressures and the risk that government intervention could tighten metals markets, potentially prompting enterprises and strategic stockpiling of copper and zinc as demand strengthens.
Spot:
(1) Shanghai: On April 24, the SHFE copper 2605 contract opened lower with a gap in the morning session, rebounding slightly before continuing to decline. The opening price was 103,060 yuan/mt. After opening, prices quickly fell to 102,720 yuan/mt, then rebounded slightly to 102,900 yuan/mt before continuing to decline to 102,410 yuan/mt. After stabilizing, prices fluctuated between 102,440 yuan/mt and 102,580 yuan/mt, then fell again to a low of 102,310 yuan/mt, with a closing price of 102,400 yuan/mt. The inter-month Contango price spread ranged between 140 yuan/mt and 70 yuan/mt, and the import profit margin for SHFE copper against the 2605 contract for the current month ranged from a loss of 40 yuan/mt to a profit of 20 yuan/mt. Outlook for today: from the invoice structure perspective, domestic trade suppliers generally raised offer prices for cargoes with invoices dated this month, pushing SHFE spot copper premiums from discounts to premiums. Meanwhile, the price spread between cargoes with invoices dated this month and cargoes with invoices dated next month widened further, reflecting the ongoing impact of periodic invoice shortages on spot pricing. As a result, some downstream enterprises preferred to purchase directly from smelters to secure invoice issuance for the current month. Demand side, copper prices remain at elevated levels, and downstream procurement is generally cautious, driven mainly by rigid demand with limited willingness to chase higher prices. In addition, the Labour Day holiday falls next week, and some downstream enterprises have pre-holiday stockpiling needs, which may lead to a certain increase in procurement, providing periodic support for spot premiums. Overall, under the combined effects of a tight invoice structure, pre-holiday stockpiling expectations, and high prices suppressing demand, Shanghai spot copper prices against the 2605 contract are expected to maintain premiums today.
(2) Guangdong: On April 24, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 280 yuan/mt, down 10 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 200 yuan/mt, down 10 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 140 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,795 yuan/mt, up 515 yuan/mt from the previous trading day; the average price of SX-EW copper was 102,695 yuan/mt, up 515 yuan/mt from the previous trading day. Overall, suppliers actively sought to liquidate holdings and lowered premiums, with overall trading activity slightly better than on April 23. However, it was learned that most downstream enterprises would be on holiday during the Labour Day holiday, and demand was expected to continue declining today, with spot premiums likely to weaken.
(3) Imported copper: On April 24, the average warrant price fell $2/mt from the previous trading day to $67/mt (price range $62-72/mt); the average B/L price fell $1/mt from the previous trading day to $65/mt (price range $61-71/mt); the average EQ copper (CIF B/L) price fell $2/mt from the previous trading day to $35/mt (price range $30-40/mt), with quotes referencing cargoes arriving from late April to early-to-mid May.
(4) Secondary copper: On April 24, the futures closing price at 11:30 was 102,400 yuan/mt, up 140 yuan/mt from the previous trading day. The average spot premium was 35 yuan/mt, up 35 yuan/mt from the previous trading day. On April 24, copper scrap prices remained unchanged MoM. The copper scrap sales sentiment index fell to 2.61, and the procurement sentiment index fell to 2.33. The price difference between copper cathode and copper scrap was 1,593 yuan/mt, down 225 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,650 yuan/mt. According to an SMM survey, copper scrap import traders indicated that price coefficients were not adjusted this week, and overseas supply conditions showed no significant changes. As a result, procurement volume remained basically flat compared with the previous two weeks, and copper scrap imports in April were expected to be basically flat with March.
Prices: On the macro front, contradictory statements emerged regarding the investigation into Powell within the US: prosecutors announced a halt, while the White House stated the investigation was still ongoing. Diplomatically, Iran's foreign minister delivered ceasefire conditions to Pakistan, while the US Defense Secretary stated that Iran could reach a deal but must never possess nuclear weapons. Militarily, Israel's defense minister confirmed strike targets for when hostilities resume, while Iran warned of severe retaliation against attacks on its energy facilities and emphasized it still controlled the Strait of Hormuz and that pre-war conditions must not be restored. Fundamentals side, supply of spot cargo remained generally tight, with SX-EW copper and cargoes with invoices dated this month being particularly scarce, while non-registered copper was relatively ample. Demand side, copper prices fluctuated at high levels, downstream procurement sentiment was cautious, focusing mainly on restocking for immediate needs, and with the Labour Day holiday approaching, the market was watching pre-holiday stockpiling activity. Overall, copper prices were expected to move sideways and hold up well today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions prudently and not replace their own independent judgment with this information. Any decisions made by clients are not related to SMM.]