Price spread between futures contracts widens again, spot premiums rise, and suppliers promptly increase their quotes [SMM Shanghai spot copper]

Published: May 23, 2025 12:16

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[SMM Spot Copper] Currently, there are signs of a widening price spread between futures contracts. Next week, as the market enters the trading period for cargoes with invoices dated next month, some traders will have a need for payment collection. However, the price spread between invoices for the current month and the next month is expected to be 30-40 yuan/mt. It is anticipated that next week, premiums and discounts will stabilize around this week's price center. If they fall below 100 yuan/mt, the market may exhibit a purchasing sentiment.

SMM May 23 News:

Today, the spot premiums of SMM #1 copper cathode against the SHFE copper 2506 contract were reported at 130-200 yuan/mt, with an average premium of 165 yuan/mt, up 30 yuan/mt from the previous trading day. The price of SMM #1 copper cathode ranged from 77,930 to 78,140 yuan/mt. In the morning session, the SHFE copper 2506 contract rose from around 77,800 yuan/mt to 78,000 yuan/mt, briefly touched 78,030 yuan/mt, and then pulled back, closing at 77,890 yuan/mt in the morning. The price spread between futures contracts returned to the 300-330 yuan/mt range, and the center of spot premiums was lifted during the day.

Due to the recent decline in spot premiums, downstream purchases were active, and the market supply tightened again. Suppliers' offers of around 120 yuan/mt were quickly snapped up in the morning session, followed by mainstream standard-quality copper premiums of 140-160 yuan/mt, high-quality copper premiums of 150-180 yuan/mt, and almost no registered SX-EW copper, with non-registered transactions at 30-50 yuan/mt.

Currently, there are signs of widening price spreads between futures contracts. As next month's invoice trading begins next week, some traders have repayment needs, but the price difference between this month's and next month's invoices is expected to be 30-40 yuan/mt. It is expected that premiums and discounts will stabilize at this week's center next week. If they fall below 100 yuan/mt, the market may show a sentiment of purchase.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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