Market Transactions Rebound After Delivery, Suppliers Actively Sell [SMM Shanghai Spot Copper]

SMM, February 17:

Today, #1 copper cathode spot prices against the SHFE 2503 contract were quoted at a discount of 130-80 yuan/mt, with an average price at a discount of 105 yuan/mt, down by 225 yuan/mt from the previous trading day. Standard-quality copper was traded at 76,520-76,720 yuan/mt, while high-quality copper was traded at 76,540-76,740 yuan/mt. The SHFE copper 2503 contract fluctuated rangebound around 76,750 yuan/mt during the morning session. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at C140-C190 yuan/mt.

After the contract rollover, suppliers were active in offloading cargoes, and spot premiums started from discounts, with good trading performance. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 120-100 yuan/mt, and high-quality copper was quoted at a discount of 90-80 yuan/mt. Due to significant buying and selling in the SHFE copper 2502 contract, suppliers showed strong willingness to offload and exchange cargoes, leading to a noticeable increase in inventory turnover compared to previous trading days. During the main trading session, prices slightly declined, with mainstream standard-quality copper traded at a discount of 130-110 yuan/mt and high-quality copper traded at a discount of 110-90 yuan/mt. Hydro copper saw limited transactions at a discount of around 200 yuan/mt. By 11:00 a.m., spot premiums stabilized.

Market transactions during the day showed a significant recovery compared to yesterday. Compared to the same period in the lunar calendar, spot premiums remained firm after the delivery of the SHFE copper 2502 contract. However, due to delayed downstream production resumption, current inventory destocking has been relatively slow. Spot premiums are expected to stabilize tomorrow.