Copper Prices Decline, Premiums Stabilize and Rebound; Expected to Rise Further After the Holiday [SMM SHFE Spot Copper]

SMM News, December 31:

Today, spot #1 copper cathode was quoted at a discount of 40 yuan/mt to parity against the January 2025 contract, with an average price at a discount of 20 yuan/mt, up 20 yuan/mt from the previous trading day. Standard-quality copper traded at 73,740-73,820 yuan/mt, while high-quality copper traded at 73,750-73,840 yuan/mt. The SHFE copper January 2025 contract fluctuated rangebound during the morning session at 73,780-73,880 yuan/mt and declined to 73,700 yuan/mt before the weekly close. The price spread between the SHFE copper January and February 2025 contracts fluctuated between a contango of 20 yuan/mt and a backwardation of 30 yuan/mt.

Spot premiums stabilized and rebounded slightly in the early session, mainly due to inactive trading in the market despite quoted prices. At the beginning of the session, mainstream standard-quality copper with invoices dated next month was quoted at a discount of 30-20 yuan/mt, while high-quality copper such as ENM and Jinchuan (plate) with invoices dated next month saw limited transactions at a discount of 20 yuan/mt to parity. Downstream purchasing demand decreased significantly, with only some suppliers selling off to recover funds. During the main trading hours, mainstream standard-quality copper with invoices dated next month saw limited transactions at a discount of 40-30 yuan/mt, while high-quality copper traded at a discount of 30-20 yuan/mt in partial deals. By 11:00 a.m., market prices gradually stabilized.

Pre-holiday market quotations and inquiries remained inactive, but suppliers slightly raised their offers due to declining copper prices. Transactions continued to cool compared to last week. After the holiday, as traders restock, spot premiums are expected to rise further. Reflecting on the fluctuations in the spot market throughout 2024, Nonferrous Network has accompanied the spot price journey for another year. As we step into New Year's Day 2025, SMM wishes all enterprises prosperity and success!