Stockpiling Sentiment Strong Before Labour Day Holiday, SHFE Copper Spot Premiums Rise Steadily [[SMM Shanghai Spot Copper]]

SMM News on April 29:

       Today, the spot price of SMM #1 copper cathode against the May 2505 contract was reported at a premium of RMB 170-240/mt, with an average premium of RMB 205/mt, up RMB 25/mt from the previous trading day. The SMM #1 copper cathode price ranged from RMB 77,920 to RMB 78,150/mt. In the morning session, the SHFE copper 2505 contract gradually rose, briefly staying above RMB 77,900/mt. However, it faced significant pressure from the 60-day moving average, and after the second trading session, the futures market gave back gains to around RMB 77,800/mt. The BACK price spread between futures contracts fluctuated between RMB 200-230/mt, and the import loss for SHFE copper in the current month widened to over RMB 800/mt.

       As the Labour Day holiday approaches, downstream stocking sentiment is active. Against the backdrop of continuous destocking in the Shanghai region, the available supply is tight, enhancing the seller's bargaining power. In the early morning session, suppliers reported a premium of RMB 160-170/mt for Tiefeng and other sources, which were snapped up instantly. Subsequently, transactions continued at a premium of RMB 170-180/mt, with high-quality copper trading at a premium of over RMB 200/mt. Entering the mainstream trading session, Tiefeng, Honglu, Jinguan, Jinchuan isa, etc., were traded at a premium of RMB 170-190/mt, while JCC, Lufang, etc., were traded at a premium of RMB 180-200/mt. Jinchuan (plate), ccc-p, etc., were traded at a premium of RMB 220-240/mt. SX-EW sources, such as a small amount of BMK, were traded at a premium of RMB 140/mt, while non-registered sources were traded at a premium of RMB 100-120/mt.

       Stocking sentiment is strong ahead of the Labour Day holiday. Low inventory levels have led suppliers to quote higher premiums, and transactions are active. Tomorrow is the last trading day of the month, and it is expected that most enterprises will close their accounts for settlement, potentially reducing market trading activity. However, considering the tight supply and the continued presence of just-in-time procurement, it is expected that spot prices will remain firm.