The Spot Market Circulation Is Moderate, with Morning Premiums Stabilizing [SMM Shanghai Spot Copper]

SMM, February 12:

Today, spot #1 copper cathode was quoted at a discount of 20 yuan/mt to a premium of 20 yuan/mt against the SHFE 2502 contract, with an average price at parity. Compared to the previous trading day, prices remained basically flat. Standard-quality copper traded at 76,600-76,830 yuan/mt, while high-quality copper traded at 76,620-76,850 yuan/mt. The SHFE copper 2502 contract fluctuated upward during the morning session, initially rising slowly from 76,520 yuan/mt to around 76,840 yuan/mt, then slightly declining in the second trading session, and finally dropping to 76,660 yuan/mt before the close. The price spread between the SHFE copper 2502 and 2503 contracts fluctuated between a discount of 180 yuan/mt and 210 yuan/mt.

Spot premiums remained stable as expected during the day, with lackluster market transactions and poor spot liquidity. In the early session, suppliers quoted mainstream standard-quality copper at parity to a premium of 20 yuan/mt, while high-quality copper was quoted at a premium of 10-30 yuan/mt. Downstream purchases were mostly on a need-only basis, and suppliers were reluctant to sell at low prices, opting instead to focus on forward-month arrangements. During the main trading session, premiums were basically flat compared to the previous day. Mainstream standard-quality copper was traded at a discount of 20-10 yuan/mt, while high-quality copper was traded at parity to a premium of 20 yuan/mt. Hydro copper saw limited transactions at a discount of around 100 yuan/mt. By 11:00 a.m., spot premiums stabilized.

Market fluctuations were relatively small today, as the price spread between near-month contracts remained around a discount of 200 yuan/mt. Coupled with market expectations for destocking in forward months, suppliers mostly chose to wait for delivery or focus on forward-month arrangements. In the short term, spot market activity remained weak, and spot premiums are expected to remain relatively stable tomorrow without significant volatility.