July 5 spot price of SMM copper

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, according to the Central Meteorological Observatory, this year's No. 9 typhoon "Bawei" has strengthened into a super typhoon. It is expected to approach the eastern sea areas of China around July 10, with a high probability of making landfall in east China. Affected by this, downstream copper semis processing plants in Jiangsu and Zhejiang are concerned that subsequent strong winds and rainstorms from the typhoon could disrupt logistics and production arrangements. They are therefore concentrating on advance stockpiling purchases, pushing up the overall center of Shanghai spot copper premiums. Observing supplier behavior, market transactions were active, and after low-priced cargoes were quickly absorbed, suppliers' willingness to hold prices firm further strengthened. Overall, under the combined effect of the concentrated release of typhoon stockpiling demand, suppliers holding prices firm, and continuous inventory destocking, Shanghai spot copper prices against the SHFE copper 2607 contract are expected to remain at a premium tomorrow, with the overall center continuing to edge up.

[SMM Brass Billet Flash] Based on frontline survey feedback from a sample of copper billet enterprises nationwide, market expectations for the industry's performance in July are generally pessimistic. Near-term improvement drivers remain insufficient, and multiple negative factors will continue to ferment. SMM expects the comprehensive operating rate of China's copper billet producers to pull back 2.44 percentage points MoM to 43.65% in July, down 1.17 percentage points YoY. The industry's low-level operation trend is expected to continue.