Domestic Arrivals Tight, Imports Increase Slightly; Insufficient Consumption Demand Leads Decline in Premiums [SMM SHFE Spot Copper]

SMM, January 17:

Today, #1 copper cathode spot prices against the SHFE copper 2502 contract were quoted at premiums of 40-90 yuan/mt, with an average premium of 65 yuan/mt, down 20 yuan/mt from the previous trading day. Standard-quality copper traded at 75,320-75,510 yuan/mt, while high-quality copper traded at 75,340-75,540 yuan/mt. The SHFE copper 2502 contract fluctuated downward during the morning session, testing 75,640 yuan/mt at the opening before declining and testing 75,240 yuan/mt before the close. The price spread between the SHFE copper 2502 and 2503 contracts fluctuated at C90-C110 yuan/mt.

Spot trading during the day was not active, and premiums declined under pressure. Early in the morning session, mainstream standard-quality copper was quoted at premiums of around 80-90 yuan/mt, while high-quality copper, such as CCC-P and Jinchuan (plate), was quoted at premiums of 100-110 yuan/mt. Market transactions were lackluster, downstream consumption was weak, and suppliers lowered premiums after facing difficulties in selling. During the main trading hours, mainstream standard-quality copper was quoted at premiums of 50-60 yuan/mt, while high-quality copper was quoted at premiums of around 80-90 yuan/mt. Hydro copper was in tight supply, with few offers available. By 11:00 a.m., market premiums continued to decline, with mainstream standard-quality copper quoted at premiums of 40-50 yuan/mt and high-quality copper at premiums of around 60-80 yuan/mt.

According to SMM, destocking continued in the Shanghai region last weekend, with limited domestic supply arrivals. On the import side, apart from regular port arrivals, only some LME canceled warrants were shipped to east China. On the demand side, downstream consumption remained weak before the holiday, and restocking sentiment was moderate. Spot premiums are expected to decline further tomorrow.