Copper Prices Rise While Market Buying Interest Remains Weak; Pre-Holiday Stocking Demand Insufficient [SMM SHFE Spot Copper]

SMM, January 16:

Today, #1 copper cathode spot prices against the current-month 2502 contract were quoted at a premium of 70-120 yuan/mt, with an average premium of 90 yuan/mt, up 30 yuan/mt from the previous trading day. Standard-quality copper traded at 75,900-76,070 yuan/mt, while high-quality copper traded at 75,930-76,090 yuan/mt. The SHFE copper 2501 contract opened higher in the morning session, testing 76,140 yuan/mt before pulling back slightly, and later dipped to 75,830 yuan/mt before rebounding slightly. The price spread between the SHFE copper 2501 and 2502 contracts fluctuated between 130 yuan/mt and 160 yuan/mt.

Although copper prices jumped overnight, market premiums did not pull back significantly. Early in the morning session, mainstream standard-quality copper was quoted at a premium of 80-90 yuan/mt, while high-quality copper, such as CCC-P and Jinchuan (plate), was quoted at a premium of 100-120 yuan/mt. Due to limited circulating supply after delivery and the high inter-month price spread, suppliers were reluctant to sell at low prices, while downstream stocking sentiment was dampened by the surge in copper prices. Disagreements emerged between buyers and sellers, with premiums in Shanghai and surrounding areas declining first. During the main trading session, mainstream standard-quality copper was traded at a premium of 70-80 yuan/mt, while high-quality copper was traded at a premium of 100-110 yuan/mt. By 11:00 a.m., market premiums had stabilized.

Trading sentiment during the day was subdued, with weak buying interest amid high copper prices. The market is concerned about insufficient stocking demand from enterprises before the Chinese New Year, and premiums are expected to continue declining in the short term.