The Shanghai-Guangdong Price Spread Widens Again as Morning Market Premiums Climb Steadily [SMM Spot SHFE Copper]

SMM, January 10:

Today, #1 copper cathode spot prices against the SHFE 2501 contract were quoted at a premium of 140-200 yuan/mt, with an average premium of 160 yuan/mt, up 15 yuan/mt from the previous trading day. Standard-quality copper traded at 75,260-75,470 yuan/mt, while high-quality copper traded at 75,280-75,510 yuan/mt. The SHFE copper 2501 contract rose from 75,180 yuan/mt to around 75,300 yuan/mt during the morning session. The price spread between the SHFE copper 2501 and 2502 contracts fluctuated between a contango of 10 yuan/mt and a backwardation of 50 yuan/mt.

Premiums continued to rise during the day, climbing steadily. At the beginning of the morning session, mainstream standard-quality copper was quoted at a premium of 130-150 yuan/mt, with low-priced cargoes quickly snapped up. High-quality copper, such as CCC-P and Jinchuan (plate), was quoted at a premium of 160-170 yuan/mt and was also quickly snapped up. Hydro copper was quoted at parity to a premium of 30 yuan/mt and was immediately sold. Subsequently, market quotations remained firm. During the main trading session, mainstream standard-quality copper was traded at a premium of 140-160 yuan/mt, while high-quality copper was traded at a premium of 180-200 yuan/mt. Downstream buyers showed evident resistance to high prices, with many opting to pick up goods from nearby warehouses or smelters. By 11:00 a.m., market activity had slowed, and premiums stabilized.

The Shanghai-Guangdong price spread exceeded 300 yuan/mt again during the day, with short-term supply tightening in both regions. It was reported that some suppliers had transferred goods to Guangdong over the weekend, and Shanghai inventory is expected to decline further next week. Premiums are anticipated to rise again on Monday.