Tight supply drove up transaction prices, narrowing the price spread of spot copper cathode between Shanghai and Guangdong. [SMM Shanghai Spot Copper]

SMM April 18 News: Today, SMM #1 copper cathode spot prices against the SHFE copper 2505 contract were reported at a premium of 100-160 yuan/mt, with an average premium of 130 yuan/mt, up 55 yuan/mt from the previous trading day. The price of SMM #1 copper cathode ranged from 76,220 to 76,400 yuan/mt. In the early morning, the SHFE copper 2505 contract weakened from 76,300 yuan/mt, then fluctuated within the range of 76,100-76,250 yuan/mt, and closed at 76,140 yuan/mt. The price spread between futures contracts for the nearby month mainly fluctuated between 100-120 yuan/mt, while the price spread between the SHFE copper 2505 and SHFE copper 2508 contracts widened to 340 yuan/mt. The import loss for SHFE copper continued to widen to 605.44 yuan/mt. During the day, spot transactions gradually rose, and after low-priced goods were absorbed, the market supply became tight, leading to significantly higher quotes compared to the early morning. Initially, suppliers quoted standard-quality copper at a premium of 80-100 yuan/mt, with some warrants from Honglu and Zijin quickly traded at a premium of 60-80 yuan/mt. Subsequently, standard-quality copper was quoted at a premium of 100-120 yuan/mt, and high-quality copper such as Jinchuan (plate) was traded at a premium of 120 yuan/mt before supply tightened, then rose to a premium of 140-160 yuan/mt. Guixi was traded at a premium of 150 yuan/mt. Non-registered goods were traded at parity to a premium of 30 yuan/mt, while SX-EW supply was tight, with the expected transaction price range around a premium of 50 yuan/mt. Copper prices stabilized above 76,000 yuan/mt, but recent market arrivals were limited, and imported copper only saw a small supplement. With active sales, inventory continued to decline. Shanghai spot copper premiums followed the trend in South China, and the Shanghai-Guangdong price spread narrowed significantly to within 30 yuan/mt during the day. Looking ahead to next week, SMM is expected to hold a copper industry conference, and suppliers are anticipated to decrease, but coinciding with the long-term contract delivery period, spot premiums are expected to continue rising.