The Price Spread Between Futures Contracts Continues to Widen, with Morning Market Premiums Steadily Rising [SMM Shanghai Spot Copper]

SMM, February 11:

Today, #1 copper cathode spot prices against the SHFE 2502 contract were quoted at a discount of 20 yuan/mt to a premium of 20 yuan/mt, with the average price at parity (yuan/mt), up 5 yuan/mt from the previous trading day. Standard-quality copper traded at 76,800–77,120 yuan/mt, while high-quality copper traded at 76,820–77,140 yuan/mt. The SHFE 2502 copper contract jumped initially and then pulled back during the morning session, testing 77,360 yuan/mt at the opening before fluctuating downward, and hitting 76,820 yuan/mt after the first trading session. The price spread between the SHFE 2502 and 2503 contracts fluctuated between C210 and C230 yuan/mt.

Spot premiums steadily increased during the day, with suppliers showing low willingness to sell at lower prices. At the opening, mainstream standard-quality copper was quoted at parity (yuan/mt) to a premium of 20 yuan/mt, while high-quality copper was quoted at a premium of 10–30 yuan/mt. Downstream effective demand was not fully released, and although inventory decreased, cargo pick-up remained primarily driven by rigid demand. During the mainstream trading session, premiums were basically flat compared to the previous day. Mainstream standard-quality copper was traded at a discount of 20–10 yuan/mt, while high-quality copper was traded at parity (yuan/mt) to a premium of 20 yuan/mt. Hydro copper saw limited transactions at a discount of around 100 yuan/mt. By 11:00 a.m., spot premiums stabilized.

According to market sources, due to the widened price spread, suppliers registered a large amount of inventory as warehouse warrants before the delivery of the SHFE 2502 copper contract. Post-holiday spot trading activity remained moderate. Spot prices are expected to remain around parity tomorrow.