Spot traders' sentiment to dump cargo is evident, with the center of premium continuing to move downward [SMM Shanghai spot copper]

SMM News on May 22:

       Today, spot #1 copper cathode against the SHFE copper 2506 contract was quoted at a premium of 110-160 yuan/mt, with an average quoted premium of 135 yuan/mt, down 140 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 77,970 to 78,200 yuan/mt. In the morning session, SHFE copper prices rose from 77,760 yuan/mt to 78,060 yuan/mt, and then fluctuated around 78,000 yuan/mt. The BACK price spread between futures contracts for the next month continued to narrow to around 250 yuan/mt.

       At the beginning of the trading session, suppliers lowered their quotes from yesterday's levels, with mainstream standard-quality copper quoted at around a 140 yuan/mt premium. Subsequently, other sources continued to lower their quotes, triggering a market sell-off. However, it was difficult to conclude transactions for JCC and other sources at premiums of 120-140 yuan/mt. Smelters offered quotes between 100-120 yuan/mt, while premiums in Jiangsu ranged from 80-120 yuan/mt. Non-registered copper was traded at around a 40 yuan/mt premium. Low-priced transactions were better during the day.

       Tomorrow is Friday. Currently, low-priced sources have been largely purchased, and warrant inventory has decreased significantly. However, warehouse inventory has not decreased as expected. It is anticipated that the center of the premium will still struggle to rebound significantly tomorrow.