【SMM Flash】ADNOC Hikes June Sulphur OSP to $860/t FOB Ruwais, an All-Time High

CMOC's Tenke Fungurume Mining (TFM) copper-cobalt operation in the Democratic Republic of Congo has offered a bonus package to workers in an effort to end an ongoing strike, according to local union representatives. The company reportedly proposed a one-off bonus and related compensation measures while urging employees to resume operations. TFM is one of the world's major copper-cobalt mining operations. Closely monitoring the outcome of labor negotiations, as a prolonged strike could affect mine operations and regional copper-cobalt supply.

[SMM Shanghai Spot Copper] Last Friday (June 5), US May non-farm payrolls data significantly exceeded expectations, and March and April non-farm payrolls data were revised up. Market expectations for a US Fed rate hike within the year intensified, lifting the US dollar index back above the 100 mark and exerting significant downward pressure on copper prices. According to SMM, after the decline in copper prices, end-user dip-buying sentiment improved, with active price fixing. Meanwhile, suppliers' willingness to sell at low prices weakened. Today, the Shanghai spot copper discount narrowed noticeably from earlier levels; orders increased markedly from last Friday, and overall market trading activity picked up. Currently, domestic standard-quality copper is offered at a discount of 40 yuan/mt to 20 yuan/mt, while non-registered copper is offered at a discount of 270 yuan/mt to 220 yuan/mt.

SMM Morning Meeting Summary: Last Friday night, LME copper opened at $13,788/mt, touched a high of $13,803/mt at the beginning of the session, then the copper price center continuously moved downward, dipping to $13,499.5/mt near the end of the session, and finally settled at $13,517/mt, a decline of 2.78%. Trading volume reached 25,200 lots, and open interest was 273,000 lots, increasing by 1,576 lots compared to the previous trading day, indicating an increase in bearish positions. Last Friday night, the most-traded LME copper contract 2607 opened at 104,790 yuan/mt, rose to 105,000 yuan/mt at the start, then fluctuated downward throughout the session, dipping to 103,600 yuan/mt near the end, and finally settled at 103,800 yuan/mt, a decline of 1.84%. Trading volume reached 62,000 lots, and open interest was 167,000 lots, decreasing by 6,309 lots compared to the previous trading day, indicating a reduction in bullish positions.