May 15 marked the last trading day for the SHFE copper 2505 contract, with the spot market generally starting to quote prices against the SHFE copper 2506 contract. As the price spread between futures contracts mainly fluctuated within a BACK range of 420-450 yuan/mt on the last trading day, spot prices against the SHFE copper 2506 contract were at a premium of 400-450 yuan/mt. As the delivery of the SHFE copper 2505 contract approached, the open interest corresponding to the delivery volume was originally significantly different from the existing delivery warrants. On May 14, amid favourable macro front and fundamental support, SHFE copper surged above 79,500 yuan/mt, only to see selling pressure increase on the futures market, erasing the gains.

[SMM spot copper] Due to the fact that a large number of delivery warrants have not yet been released, the supply of copper in the market is tight. Suppliers holding mainstream standard-quality copper are less willing to sell at low prices. It is expected that warrants will be released tomorrow, which will deal a blow to the market premiums, causing premiums to decline.

Today, spot #1 copper cathode in North China was trading at a discount of 20 yuan/mt to a premium of 80 yuan/mt against the front-month contract, with an average premium of 30 yuan/mt, unchanged from the previous trading day. The transaction prices ranged from 77,600 yuan/mt to 77,800 yuan/mt, with an average price of 77,700 yuan/mt, down 715 yuan/mt from the previous trading day.

On Friday evening, LME copper opened at $9,519/mt, initially touching a high of $9,541.5/mt before slightly pulling back and then continuing to rise.

[SMM Morning Meeting Summary: Bullish and Bearish Factors Coexist, Copper Prices Encounter Resistance] On May 16, spot #1 copper cathode against the SHFE copper 2506 contract for the current month was quoted at a premium of 420-470 yuan/mt, with an average quoted premium of 445 yuan/mt, up 425 yuan/mt MoM. The outflow of warrants last Tuesday and Wednesday will exert pressure on the premium. It is expected that there is a gradual risk of the premium pulling back to 400 yuan/mt this week, but downstream purchases at lower prices are expected to boost market trading activity...