Warrants have not yet been released, and suppliers refuse to budge on prices when selling goods. It is expected that the premium will decline tomorrow. [SMM Shanghai spot copper]

SMM News on May 19:

       Today, spot SMM #1 copper cathode was quoted at a premium of 420-470 yuan/mt against the front-month 2506 contract, with an average quoted premium of 445 yuan/mt, up 425 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,740 to 78,920 yuan/mt. In the morning session, the SHFE copper 2506 contract pulled back from 77,900 yuan/mt to a low of 77,540 yuan/mt. The backwardation between months fluctuated within 420-440 yuan/mt, and the import loss for the front-month SHFE copper contract was approximately 650 yuan/mt.

       In the morning session, suppliers quoted mainstream standard-quality copper at a premium of 420-450 yuan/mt, with brands like Yuguang, Tiefeng, and Jinguan quoted around 400 yuan/mt. Prices in the Changzhou region ranged from 380-400 yuan/mt, while some Honglu and other supplies were quoted at a premium of 350-360 yuan/mt. Despite the decline in copper prices, trading sentiment remained poor. In the Jiangsu region, production cuts at rod mills reduced market purchasing activity to 2.75. In northern China, smelter maintenance led to fewer shipments, and the willingness to sell index dropped to 3.07.

       Due to the large number of delivery warrants still not flowing into the market, the available supply is tight, and suppliers have a low willingness to sell mainstream standard-quality copper at lower prices. It is expected that the release of warrants tomorrow will put downward pressure on premiums, causing them to decline.