East China Inventory Continues Destocking, Morning Market Premium Remains Firm [SMM SHFE Spot Copper]

SMM January 13 News:

Today, #1 copper cathode spot prices against the January 2025 contract were quoted at a premium of 130-200 yuan/mt, with an average premium of 155 yuan/mt, down 5 yuan/mt from the previous trading day. Standard-quality copper transaction prices ranged from 75,520 to 75,730 yuan/mt, while high-quality copper transaction prices ranged from 75,560 to 75,760 yuan/mt. The SHFE copper January 2025 contract jumped initially and then pulled back during the morning session, rising from 75,250 yuan/mt at the opening to 75,550 yuan/mt before fluctuating downward, ending the morning session near 75,300 yuan/mt. The price spread between the SHFE copper January 2025 and February 2025 contracts fluctuated between a contango of 30 yuan/mt and a backwardation of 10 yuan/mt.

Compared to last Friday, the market was basically stable during the day, with firm offers prevailing. Early in the morning session, mainstream standard-quality copper was quoted at a premium of 130-150 yuan/mt, and low-priced cargoes were snapped up instantly. High-quality copper, such as CCC-P and Jinchuan (plate), was quoted at a premium of 160-170 yuan/mt and was also quickly sold. Hydro copper was quoted at parity to a premium of 30 yuan/mt and was immediately purchased. Subsequently, market quotations remained firm. During the main trading hours, 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, opting to pick up goods from nearby warehouses or smelters. By 11:00 a.m., market premiums had stabilized.

According to SMM, over the weekend, destocking continued in Shanghai and Jiangsu regions, with some suppliers transferring goods to Guangdong, leading to tighter inventories in east China. The overall transaction center in the market shifted higher compared to last Friday. However, due to the high copper prices, pre-holiday stocking demand from downstream buyers has yet to emerge. Premiums are expected to remain stable tomorrow.