Deep-Sea Minerals Company Submitted a Mining Application; Overnight, Both LME Copper and SHFE Copper Closed Higher [SMM Copper Morning Meeting Summary]

Wednesday, April 1, 2026
Futures: Overnight, LME copper opened at $12,216/mt and dipped to $12,181.5/mt in early trading. Copper prices then fluctuated upward in center and neared $12,420/mt toward the close, before finally settling at $12,382.5/mt, up 1.64%. Trading volume reached 18,800 lots, and open interest stood at 298,900 lots, an increase of 3,875 lots from the previous trading day. Overnight, the most-traded SHFE copper 2605 contract opened at 95,730 yuan/mt. It fluctuated rangebound in early trading and touched a low of 95,550 yuan/mt, then climbed all the way upward to a high of 96,780 yuan/mt, before finally closing at 96,760 yuan/mt, up 1.26%. Trading volume reached 56,200 lots, and open interest stood at 186,300 lots, up 598 lots from the previous trading day, mainly driven by increased long positions.
[SMM Copper Morning Meeting Summary] News:
(1) Deep Sea Minerals (DSM) recently announced that it had submitted an application to the US National Oceanic and Atmospheric Administration (NOAA) under the Deep Seabed Hard Mineral Resources Act (DSHMRA). NOAA is responsible for regulating mineral exploration and development activities by qualified US entities in international waters. Recently, the agency pledged to accelerate the approval process, saying it would "provide the necessary resources to ensure that license and permit approvals avoid unnecessary delays." Last year, US President Trump signed an executive order to accelerate the development of the deep-sea mining industry, the latest move in his effort to expand US supplies of critical minerals such as nickel, copper, and manganese. The application was handled by American Ocean Minerals Corp., DSM's US subsidiary, with the goal of obtaining an exploration license for polymetallic nodules in the Clarion-Clipperton Zone (CCZ) in the Pacific Ocean. According to NOAA regulations, the application materials include technical, environmental, and operational information, as well as detailed descriptions of baseline environmental data, monitoring plans, mitigation measures, and exploration activity plans covering related expenditures.
Spot:
(1) Shanghai: On the morning of March 31, the SHFE copper 2604 contract fluctuated rangebound. It opened at 95,400 yuan/mt, rose after the opening to a high of 95,640 yuan/mt, then pulled back. Prices then repeatedly retreated after rapid rise, touching a high of 95,890 yuan/mt, before entering a weak downward trend and falling to a low of 95,310 yuan/mt, with the closing price at 95,440 yuan/mt. The price spread between futures contracts stood between a contango of 50 yuan/mt and a backwardation of 10 yuan/mt, while the import profit margin for the SHFE copper front-month contract was between a loss of 140 yuan/mt and 50 yuan/mt. Looking ahead to today, the Shanghai spot copper market is expected to see a phased recovery. Demand side, as the new monthly procurement cycle begins, previously accumulated purchasing demand from downstream enterprises is expected to be gradually released. Combined with the stockpiling window ahead of the Qingming Festival, market inquiry activity is likely to rebound, and transactions may improve significantly from month-end levels, providing some support for spot discounts. Market structure side, the price spread between high-quality copper and standard-quality copper remained at a relatively narrow level, reflecting that actual consumption demand still dominated the market, while brand premiums weakened. Supply side, imported cargoes have continued to arrive recently, and the destocking speed of social inventory in Shanghai has slowed, leaving overall circulating supply relatively ample and limiting room for spot discounts to recover. Overall, driven by both early-month procurement and pre-holiday stockpiling, spot prices against the 2604 contract are expected to see narrower discounts today.
(2) Guangdong: On March 31, spot prices of Guangdong #1 copper cathode against the front-month contract were quoted at premiums of 140 yuan/mt for high-quality copper, up 10 yuan/mt from the previous trading day; premiums of 50 yuan/mt for standard-quality copper, up 10 yuan/mt from the previous trading day; and discounts of 10 yuan/mt for SX-EW copper, up 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 95,780 yuan/mt, up 555 yuan/mt from the previous trading day, while the average price of SX-EW copper was 95,675 yuan/mt, also up 555 yuan/mt. Overall, market trading was sluggish at month-end, but spot premiums remained firm.
(3) Imported copper: On March 31, the average warrant price fell $1/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 $66/mt (price range: $60-70/mt); and the average EQ copper (CIF B/L) price fell $2/mt from the previous trading day to $37/mt (price range: $30-44/mt), with quotations referring to cargoes scheduled to arrive from mid-April to early May.
(4) Secondary copper: As of 11:30 on March 31, the futures closing price was 95,360 yuan/mt, down 270 yuan/mt from the previous trading day, while the average spot premiums stood at -55 yuan/mt, unchanged from the previous trading day. On March 31, copper scrap prices rose 400 yuan/mt MoM, the sales sentiment index for copper scrap rose to 2.41, and the procurement sentiment index rose to 2.42. The price difference between copper cathode and copper scrap was -251 yuan/mt, down 715 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 815 yuan/mt. According to the SMM survey, as copper price fluctuations narrowed, many suppliers of copper scrap became less willing to sell. Secondary copper rod enterprises said that amid volatile copper prices, transactions in copper scrap improved somewhat, but still remained insufficient to meet normal production needs.
Prices: The Iranian president stated a willingness to end the war, on the condition that its demands are met and guarantees against renewed attacks are obtained; meanwhile, the Revolutionary Guard announced that from April 1 it would strike enterprises in the Middle East related to US high technology, while the US military's aircraft carrier Bush was being deployed to the Middle East. The US defense secretary said the direction of the conflict would be decided in the coming days, and Trump pressed for the opening of the Strait of Hormuz and plans to end the war within two to three weeks; Iran's foreign minister said there had been no negotiations with the US, though information had been exchanged, and there had been no response yet to the "15-point plan." The current Middle East conflict has eased somewhat, crude oil prices plunged, inflation expectations cooled, and the US dollar index pulled back under pressure, which was bullish for copper prices. Fundamentals, supply side, imported copper cargoes continued to arrive, and spot circulation remained generally ample in the market; demand side, the market entered a new round of monthly procurement cycle, and downstream demand is expected to gradually release. Overall, copper prices are expected to extend gains 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 should not use this to replace their own independent judgment. Any decisions made by clients are unrelated to SMM.]