Social Warehouses Continue Inventory Buildup, Domestic Trade Market Remains Sluggish Before Delivery [SMM Shanghai Spot Copper]

SMM, February 13:

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. This was flat compared to the previous trading day. Standard-quality copper traded at 77,070–77,230 yuan/mt, while high-quality copper traded at 77,090–77,250 yuan/mt. The SHFE copper 2502 contract fluctuated rangebound during the morning session, moving between 77,080–77,260 yuan/mt, and the price spread between the SHFE copper 2502 and 2503 contracts ranged from a contango of 200 yuan/mt to 250 yuan/mt.

Spot premiums were basically flat compared to yesterday, as downstream consumption has yet to show significant improvement. Early in the session, suppliers quoted mainstream standard-quality copper at parity to a premium of 20 yuan/mt, while high-quality copper was quoted at a premium of 10–30 yuan/mt. Downstream purchases remained demand-driven, but in-plant inventory declined compared to previous levels. During the main 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 to a premium of 20 yuan/mt. Hydro copper saw limited transactions at a discount of around 100 yuan/mt. Notably, prices for non-registered cargoes have been rising recently, narrowing the price spread with mainstream standard-quality copper. By 11:00 a.m., spot premiums stabilized.

According to SMM, inventory buildup continued in major domestic regions this week, though at a significantly slower pace compared to last week. The high contango structure of the SHFE copper 2402 contract has dampened short-term purchase willingness among downstream enterprises. Spot premiums are expected to remain around parity tomorrow.