Concentrated Arrivals of Imports Lead to Slight Decline in Premiums, Poor Spot Trading in Early Market [SMM Shanghai Spot Copper]

SMM, February 21:

Today, spot #1 copper cathode was quoted at a discount of 140-80 yuan/mt against the SHFE 2503 contract, with an average discount of 110 yuan/mt, down 20 yuan/mt from the previous trading day. Standard-quality copper was traded at 77,210-77,410 yuan/mt, while high-quality copper was traded at 77,230-77,450 yuan/mt. The SHFE 2503 copper contract pulled back from 77,500 yuan/mt to 77,340 yuan/mt during the morning session, then jumped again and pulled back, testing 77,540 yuan/mt during the period. The price spread between the SHFE 2503 and 2504 contracts fluctuated at C160-C190 yuan/mt.

As the weekend approached, downstream stocking demand did not materialize, and suppliers were reluctant to build up inventory, with a few low-priced transactions leading the decline in premiums. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 110-80 yuan/mt, and high-quality copper was quoted at a discount of 90-70 yuan/mt. The market was quiet, and spot premiums declined accordingly. During the main trading session, mainstream standard-quality copper was traded at a discount of 140-110 yuan/mt, and high-quality copper was traded at a discount of 120-90 yuan/mt. Hydro copper saw limited transactions at a discount of around 200 yuan/mt. By 11 a.m., mainstream standard-quality copper was traded at a discount of 140-120 yuan/mt in small volumes, while high-quality copper was traded at a discount of 120-100 yuan/mt.

During the day, some imported copper flowed into the market, coupled with weak downstream consumption, leading to a slight decline in premiums. The post-holiday inventory buildup in China has gradually slowed, and smelters have expanded their export layouts. Spot premiums are expected to rebound next week.