Spot Premiums Rose as Expected, with Slight Consumption Recovery Nearing the Weekend [SMM Shanghai Spot Copper]

SMM, February 28:

Today, spot #1 copper cathode was quoted at a discount of 120-80 yuan/mt against the SHFE 2503 contract, with an average price at a discount of 100 yuan/mt, up 5 yuan/mt from the previous trading day. Standard-quality copper was traded at 76,760-76,880 yuan/mt, while high-quality copper was traded at 76,780-76,900 yuan/mt. The SHFE copper 2503 contract opened higher but moved downwards during the morning session, fluctuating around 76,900 yuan/mt before dropping to 76,770 yuan/mt by the end of the morning session. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at C100-C140 yuan/mt.

Spot premiums rebounded as expected during the day, and overall transactions improved compared to the previous day. At the beginning of the session, suppliers quoted mainstream standard-quality copper with invoices dated next month at a discount of 100-80 yuan/mt, while high-quality copper with invoices dated next month was quoted at a discount of 80-70 yuan/mt. Some downstream stocking demand for the weekend emerged. During the main trading session, mainstream standard-quality copper with invoices dated next month was traded at a discount of 120-100 yuan/mt, and high-quality copper with invoices dated next month was traded at a discount of 100-80 yuan/mt. Hydro copper with invoices dated next month was traded at a discount of around 220 yuan/mt. By 11:00 a.m., the market's trading center had stabilized.

Suppliers raised their offers further compared to the previous day. Although some companies faced month-end settlement and payment collection needs, overall market transactions remained robust. Influenced by destocking in surrounding regions and increased export volumes, suppliers were reluctant to sell their inventories. Spot premiums are expected to rise further next Monday.