Copper Prices Broke Through and Rose in the Morning Market, but Premiums Remained Firm [SMM Shanghai Spot Copper]

SMM, March 11:

Today, #1 copper cathode spot prices against the SHFE copper 2503 contract were quoted at a discount of 10 yuan/mt to a premium of 30 yuan/mt, with an average premium of 10 yuan/mt, up 10 yuan/mt from the previous trading day. Standard-quality copper was traded at 78,410-78,730 yuan/mt, while high-quality copper was traded at 78,430-78,750 yuan/mt. The SHFE copper 2503 contract opened higher and trended upward during the morning session, rising from around 78,500 yuan/mt to break through 79,000 yuan/mt, with a peak at 79,390 yuan/mt. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated between C60 and C110 yuan/mt.

Overnight copper prices returned to high levels, and expectations of tight supply led suppliers to hold back cargoes. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 20 yuan/mt to parity, while high-quality copper was quoted at a premium of 10-30 yuan/mt. Suppliers anticipated tight smelter supply in the future. During the main trading session, mainstream standard-quality copper was traded at a discount of 10 yuan/mt to parity, while high-quality copper was traded at a premium of 20-30 yuan/mt. Hydro copper was traded at a discount of around 50 yuan/mt. By 11:00 a.m., market quotations stabilized, and some buyers restocked at lower prices, pushing up the bottom of spot premiums.

Morning quotations remained firm, but as copper prices broke upward, market transactions gradually cooled. The rise in spot premiums was mainly driven by structural competition among suppliers and expectations of tight supply. Spot premiums are expected to remain stable tomorrow.