On the last day before Labour Day holiday, strong destocking of copper cathode supported the premium of SHFE copper [[SMM Shanghai spot copper]]

SMM, April 30:

        Today, spot prices of SMM #1 copper cathode against the May 2025 (2505) contract were quoted at a premium of 200-260 yuan/mt, with an average premium of 230 yuan/mt, up 25 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 77,840-78,060 yuan/mt. In the morning session, the SHFE copper 2505 contract pulled back continuously from 77,680 yuan/mt, hitting a low of 77,390 yuan/mt near the morning close. The price spread between futures contracts (BACK) for the next month widened to 230-250 yuan/mt.

        On the last trading day before the holiday, both buying and selling sentiment in the spot market declined, mainly because most traders started their holidays early. However, there were still downstream buyers making just-in-time procurement, so premiums continued to rise. In the morning session, suppliers quickly closed deals for Dajiang pc and other brands at a premium of 190 yuan/mt, while a small amount of low-priced spot cargo in Jiangsu was traded at 160-180 yuan/mt. Subsequently, during the main trading session, Dajiang pc, Jinfeng, etc., were traded at premiums of 200-210 yuan/mt, while JCC, Lufang, etc., were traded at premiums of 220-230 yuan/mt. Non-registered spot cargo was actively traded at premiums of 130-140 yuan/mt.

       Currently, the price spread between futures contracts (BACK) for the next month remains above 200 yuan/mt. The replenishment of spot cargo after the holiday and the decline in downstream consumption sentiment will make it difficult for premiums to remain firm, and they are expected to come under pressure.