The price spread between futures contracts fluctuated rangebound in the last trading day, and the market's premium for the next month moved downwards after a higher opening [SMM Shanghai spot copper]

SMM News on May 15:

       Today, SMM #1 copper cathode spot prices against the front-month 2505 contract were quoted at a discount of 20 yuan/mt to a premium of 60 yuan/mt, with an average quoted premium of 20 yuan/mt, up 45 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 78,610-78,840 yuan/mt. According to SMM's #1 copper cathode methodology, SMM consistently quotes prices against the front-month contract. In the morning session, SHFE copper prices jumped initially and then pulled back. During the main trading period, the SHFE copper 2505 contract fluctuated between 78,630-78,800 yuan/mt, while the SHFE copper 2506 contract fluctuated between 78,200-78,370 yuan/mt. The inter-month BACK price spread mainly fluctuated between 430-450 yuan/mt.

       In the morning session, suppliers quoted prices against the SHFE copper 2606 contract, with standard-quality copper premiums ranging from 430-460 yuan/mt and high-quality copper premiums ranging from 470-500 yuan/mt. Subsequently, transaction prices fell, with deals for Tiefeng, Zhongtiaoshan PC, Yuguang, etc., closing at premiums of 380-410 yuan/mt, while Guixi closed at around a 470 yuan/mt premium. SX-EW copper transactions were around a 350 yuan/mt premium, and non-registered copper held firm at a 300 yuan/mt premium.

       The futures market pulled back compared to yesterday, and the price spread did not widen significantly. Yesterday, SHFE copper futures warrants increased by over 20,000 mt to over 50,000 mt. It is expected that tomorrow's spot premiums will decline from today's levels.