Morning Market Demand Remains Weak with Sluggish Transactions, Spot Premiums Edge Lower [SMM Shanghai Spot Copper]

SMM, February 19:

Today, #1 copper cathode spot prices against the SHFE 2503 contract were quoted at a discount of 130-90 yuan/mt, with an average price at a discount of 110 yuan/mt, down 5 yuan/mt from the previous trading day. Standard-quality copper was traded at 76,890-77,130 yuan/mt, and high-quality copper at 76,910-77,150 yuan/mt. The SHFE copper 2503 contract opened higher in the morning but moved downwards after testing 77,270 yuan/mt. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at C140-C170 yuan/mt.

Spot trading was lackluster during the day, and spot premiums slightly declined after the release of warehouse warrants. In early trading, suppliers quoted mainstream standard-quality copper at a discount of 120-100 yuan/mt, and high-quality copper at a discount of 100-90 yuan/mt. Market quotations were mostly stable compared to the previous day, but both buyers and sellers showed weak willingness to trade. 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 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.

Trading activity during the day was slightly weaker than the previous day, as downstream operating rates have yet to recover, leading to weak market buying interest. Spot premiums are expected to decline slightly tomorrow.