SHANGHAI, Nov 25 (SMM) – According SMM official website, intraday SMM 1# copper cathode spot premiums stood at around 350 yuan/mt, plunging by around 85% from 2,200 yuan/mt, a historical high recorded last Friday. Meanwhile, the backwardation of SHFE copper also weakened to some point.

SMM believes that there are three major causes behind the drastic falls of copper cathode spot premiums. First, the domestic copper inventory is likely to drop much slowly this week, though global copper cathode inventory is still low. And the issue of lacking VAT invoices for imported copper cathode also eased. Furthermore, the downstream processing companies in some places had to reduce or suspend production in the face of high premiums and rising copper prices as well as a lacklustre terminal market.