Data: SHFE, DCE market movement (Sep 14)

[SMM SHFE Copper Spot] Looking ahead to tomorrow, suppliers continued to lower quotes during the day to facilitate transactions, but no large-scale inflow of previously delivered warrants into the spot market has been seen yet, and available supply in the Shanghai region remains relatively limited. Some delivered cargoes are expected to be released gradually from this afternoon to tomorrow. If warrants are canceled and flow into the spot market, the tightness on the supply side may ease somewhat, putting some pressure on spot premiums. Meanwhile, some suppliers have limited willingness to sell at low prices, and sentiment to hold prices firm and hold back from selling persists, providing some support to spot premiums. On the demand side, downstream processing enterprises overall still mainly make just-in-time procurement, with limited acceptance of high copper prices and high premiums and little willingness to chase higher prices. Overall, Shanghai spot premiums are expected to continue to consolidate at highs tomorrow. If the outflow of delivered warrants increases, the center of premiums may edge lower further. Going forward, close attention should be paid to the pace of warrant outflows, changes in the next-month backwardation, and actual downstream purchasing performance.

Spot copper in North China was quoted at premiums of 220-380 yuan/mt against the front-month contract, with an average premium of 300 yuan/mt, down 70 yuan/mt from the previous trading day. The average transaction price was 110,305 yuan/mt, up 135 yuan/mt from the previous trading day.