LME Base Metals Cash to 3-Month Backwardation/Contango (2017-9-21)

[SMM Shanghai Spot Copper] According to SMM data on social inventory of copper cathode as of September 21, Shanghai had only 43,900 mt of inventory, down 14,700 mt from September 17. During the morning trading session, Shanghai spot copper premiums were traded instantly at 700 yuan/mt at the open, then continued to climb to above 850 yuan/mt. In the afternoon session, SMM tracked market dynamics, with some buyers pushing spot transactions to around 1,000 yuan/mt in premiums to lock in supply ahead of time. During the day, the SHFE copper 2610 contract fluctuated around 110,000 yuan/mt, and the nearby backwardation structure widened compared with the morning. Amid the "three highs" market conditions, spot market buyers should also be mindful of risks amid stockpiling sentiment ahead of the dual holidays.

Cobre (ASX:CBE) completed its first deep diamond hole since 2021 at the Sierra Atacama copper project in Antofagasta, Chile. Hole SA_CBR_DD001 reached 986.9 metres and intersected 3.57 metres of estimated 4% chalcopyrite and 2% pyrite mineralisation from 784.90 to 788.47 metres, plus 0.60 metres of about 6% chalcopyrite and 3% pyrite in magnetite breccia from 798.20 to 798.80 metres. Cobre is advancing a roughly 40,000-metre program, with 11 reverse-circulation holes done and four rigs operating, to convert the NI 43-101 resource of 109.6 million tonnes at 0.67% copper into a JORC estimate; the asset delivered first positive cash flow on 1 July 2026.

Mt Malcolm Mines (ASX:M2M) has opened a new copper-gold exploration corridor in Western Australia. The company identified four copper-gold prospects across targets including Braiser, where surface rock-chip samples returned copper grades up to 1.37% and gold up to 0.44 g/t. The new corridor broadens the project's mineralisation styles and search space. Mt Malcolm plans systematic surface sampling and follow-up drilling to test the anomalies and further assess copper-gold potential.