Copper prices retreated to 80,000 yuan/mt, early market trading improved

Today, spot premiums for 1# copper cathode against the current month 2406 contract were reported at a discount of 60 yuan/mt to 30 yuan/mt, with an average discount of 45 yuan/mt, up 25 yuan/mt from the previous trading day. Standard-quality copper traded at 80,100-80,340 yuan/mt, while high-quality copper traded at 80,110-80,350 yuan/mt. The SHFE 2406 copper contract opened lower last night and narrowly fluctuated during the early morning session. Overall, it fluctuated within the range of 80,100-80,400 yuan/mt. The contango between the SHFE copper 2406 and 2407 contracts fluctuated between 270-220 yuan/mt.

Last night, SHFE copper gapped lower to around 80,000 yuan/mt, and downstream orders significantly improved, with intraday transactions improving. At the beginning of the morning session, mainstream sellers quoted standard-quality copper at a discount of 50 yuan/mt to 40 yuan/mt; high-quality copper such as CCC-P and JNMC were reported at a discount of 30 yuan/mt to 20 yuan/mt for next month's invoices. Downstream restocking was strong, and some low-price sources were quickly snapped up. However, due to factors such as high inventory and abundant imported sources, some sellers' offers fell, leading to mixed spot premiums. Mainstream standard-quality copper for next month's invoices was reported at a discount of 60 yuan/mt to 40 yuan/mt, while high-quality copper such as CCC-P and JNMC were reported at a discount of 50 yuan/mt to 40 yuan/mt with some transactions. Hydro copper such as MV was reported at a discount of 170 yuan/mt to 150 yuan/mt. By 11 a.m., the market trading remained strong, and after premiums stabilized, sellers were eager to sell.

Due to the further decline in copper prices, sellers held an optimistic outlook on future consumption growth, and spot premiums continued to rise. However, high inventory and warrant levels still suppressed premiums. It is expected that spot premiums will continue to rise slightly tomorrow but will still fluctuate below 0 yuan/mt.