Social Inventory Saw Only a Slight Buildup Over the Weekend, with Premiums for High-Quality Copper Rising Significantly [SMM Shanghai Spot Copper]

SMM March 3 News:

Today, #1 copper cathode spot prices against the SHFE 2503 contract were quoted at a discount of 110–50 yuan/mt, with an average price at a discount of 80 yuan/mt, up 20 yuan/mt from the previous trading day. Standard-quality copper traded at 76,970–77,040 yuan/mt, while high-quality copper traded at 77,000–77,070 yuan/mt. The SHFE copper 2503 contract fluctuated downward during the morning session, initially testing 77,200 yuan/mt before declining stepwise to around 77,000 yuan/mt by the end of the morning session. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at C90–C110 yuan/mt.

Spot premiums continued to rise during the day. Although transactions did not show significant improvement, suppliers were reluctant to sell high-quality copper. Early in the session, mainstream suppliers quoted standard-quality copper at a discount of 100–80 yuan/mt and high-quality copper at a discount of 80–50 yuan/mt. Downstream buyers showed low acceptance of high premiums, and actual transaction centers in surrounding regions were weaker. However, suppliers anticipated tight availability of high-quality copper, leading to higher offers and transactions compared to last Friday. During the main trading session, standard-quality copper was quoted at a discount of 110–90 yuan/mt, while high-quality copper was quoted at a discount of 80–60 yuan/mt. Hydro copper with invoices dated next month was traded at a discount of around 160 yuan/mt. By 11:00 a.m., the transaction center in the market had stabilized.

According to SMM, only a slight inventory buildup occurred in the Shanghai region over the weekend, suggesting the current inventory buildup cycle may have ended. Currently, inventories in east China are near 300,000 mt, with downstream consumption showing a continuous recovery trend. Spot premiums are expected to rise further tomorrow.