Analyzing Market Strategies to Position for and Drive Up September Copper Prices

[SMM Analysis:The upward trend in smelting acid prices has persisted for over half a year, with further room for growth expected in the fourth quarter.] Will the upward trend continue into the fourth quarter? The answer is yes. On the supply side, ten smelters are scheduled for maintenance in the fourth quarter, affecting 2.7 million tons of crude smelting capacity, which will significantly limit smelting acid supply. Additionally, recent shutdowns of small acid plants in southwestern China have tightened acid sources.On the demand side, winter fertilizer preparation needs will gradually emerge in the fourth quarter, stimulating demand for smelting acid. Moreover, recent renewed increases in sulfur prices have bolstered demand for smelting acid as a substitute for sulfur-based acid. Finally, at the end of August, the EU revoked the carcinogenic label for titanium dioxide, which is expected to benefit China's titanium dioxide export demand.

[SMM Shanghai Spot Copper] Copper prices around 80,000 yuan/mt are expected to suppress downstream procurement tomorrow. However, as it will be Friday, downstream stocking sentiment is likely to rise, which is expected to limit the decline in premiums.

The operating rate of enamelled wire production equipment edged down 0.06 percentage points WoW to ......

In North China today, spot prices of #1 copper cathode against the front-month contract were at a discount of 100-80 yuan/mt, averaging a discount of 90 yuan/mt, down 20 yuan/mt from the previous trading day. The transaction price ranged from 79,790 to 80,050 yuan/mt, averaging 79,920 yuan/mt, down 340 yuan/mt from the previous trading day.

SMM Morning Meeting Summary: Overnight, LME copper opened at $9,986.5/mt, fluctuated downward initially to touch a low of $9,934/mt, then rose continuously to reach a high of $10,006.5/mt during the session, and finally closed at $9,974/mt, down 0.39%, with trading volume at 21,000 lots and open interest at 281,000 lots. Overnight, the most-traded SHFE copper 2510 contract opened and touched a low of 80,000 yuan/mt, then the center of copper prices gradually moved upward to reach a high of 80,430 yuan/mt, jumped initially and then pulled back, and finally closed at 80,260 yuan/mt, up 0.1%, with trading volume at 26,000 lots and open interest at 191,000 lots.