[SMM spot copper] As the delivery date approaches, positions in the SHFE copper 2505 contract are being reduced, leading to an increase in position liquidation. The price spread between consecutive months has narrowed, and spot prices are gradually aligning with the delivery logic. However, if the discount widens further, the market is expected to exhibit a purchasing sentiment for delivery purposes.

Today, spot #1 copper cathode in North China was trading at a discount of 400 yuan/mt to 260 yuan/mt against the front-month contract, with an average discount of 330 yuan/mt, a decrease of 30 yuan/mt from the previous trading day. The transaction prices ranged from 77,710 yuan/mt to 78,210 yuan/mt, with an average price of 77,960 yuan/mt, an increase of 135 yuan/mt from the previous trading day.

According to SMM, the operating rate of copper cathode rod enterprises in April was 73.85%, up 4.2 percentage points MoM and 2.41 percentage points higher than the expected value. The operating rate of copper cathode rod enterprises increased by 4.89 percentage points YoY in April. Among them, the operating rate of large enterprises was 83.67%, that of medium-sized enterprises was 59.28%, and that of small enterprises was 56.61%.

[SMM Morning Meeting Summary: Focus on Today's Joint Statement by China and the US; Copper Prices Still Have Support at the Bottom] On May 9, spot prices of SMM #1 copper cathode against the May 2505 contract were reported at a premium of 20 yuan/mt to a premium of 140 yuan/mt, with an average price at a premium of 80 yuan/mt, down 145 yuan/mt from the previous trading day. As the delivery countdown begins this week, the current open interest for the May contract remains significantly higher compared to the deliverable warrants. It is expected that...

[Countdown to China-U.S. Joint Statement: Weak Consumer Demand Amid High Copper Prices and Price Spread Between Futures Contracts] On the macro side, at a Chinese press conference, it was announced that substantial progress had been made in the high-level economic and trade talks between China and the United States, and important consensus had been reached. Both sides agreed to establish a China-U.S. economic and trade consultation mechanism. China and the United States will finalise the relevant details as soon as possible and will release the joint statement reached in the talks at a press conference on May 12. Trump's major announcement: One of the most important and influential pieces of content will be released; Trump said he would sign an executive order that would immediately reduce drug prices by 30%-80%.

[SMM Analysis: Deterioration in Raw Material Supply Leads to Significant Pullback in Operating Rate of Secondary Copper Rod] The operating rate of secondary copper rod was 33.89% in April, lower than the expected 36.8%, down 6.29% MoM and 10.42% YoY. Due to the escalating trade war between China and the US, during the Qingming Festival holiday on April 4, the Customs Tariff Commission of the State Council issued a statement that, starting from 12:01 a.m. on April 10, 2025, an additional 34% tariff would be imposed on all imported goods originating from the US. The news triggered a sharp decline in copper market prices, with SHFE copper hitting the daily limit down immediately after the holiday and continuing to fall for three consecutive days...

[SMM Analysis] According to SMM, the operating rate of copper foil enterprises in April 2025 was 71.51%, up 0.31 percentage points MoM and 0.60 percentage points YoY...