Spot Premiums Remain Flat; Morning Trading Is Sluggish but Offers Are Firm [SMM Shanghai Spot Copper]

SMM News, March 10:

Today, #1 copper cathode spot prices against the SHFE 2503 contract were quoted at a discount of 30 yuan/mt to a premium of 20 yuan/mt, with an average price at a discount of 5 yuan/mt, flat from the previous trading day. Standard-quality copper traded at 78,200-78,320 yuan/mt, while high-quality copper traded at 78,230-78,350 yuan/mt. The SHFE copper 2503 contract opened higher but moved downwards during the day, testing 78,500 yuan/mt in early trading before fluctuating downward to 78,090 yuan/mt by the end of the morning session. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated between C50 and C90 yuan/mt.

The early morning market was quieter compared to last week, with poor transactions but no signs of a decline in premiums. At the beginning of trading, suppliers quoted mainstream standard-quality copper at a discount of 30-10 yuan/mt, and high-quality copper at a discount of 10 yuan/mt to a premium of 10 yuan/mt. Some suppliers sold at low prices but did not lead the market downward, as mainstream supply prices remained firm. During the main trading session, mainstream standard-quality copper was traded at a discount of 20-10 yuan/mt, and high-quality copper at a discount of 10 yuan/mt to a premium of 20 yuan/mt. Hydro copper was traded at a discount of around 80 yuan/mt. By 11:00 a.m., market quotations remained stable, while downstream consumption was sluggish.

According to SMM, domestic social warehouses continued destocking over the past weekend, and consumption has shown signs of improvement since March. Expectations of tight supply have been repeatedly mentioned recently, and excluding warehouse warrants, the market currently has limited circulating supply. Referring to Q3 2024, spot prices are expected to hover around parity in the short term.