Cash conversion of imported copper is evident, copper prices rise while premiums come under pressure [SMM Shanghai spot copper]

SMM News on May 26:

       Today, SMM #1 copper cathode spot prices were quoted at a premium of 150-220 yuan/mt against the current-month 2506 contract, with an average quoted premium of 185 yuan/mt, up 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 78,510-78,670 yuan/mt. In the morning session, SHFE copper prices traded strongly above the daily average line, repeatedly touching highs above 78,450 yuan/mt, before pulling back to fluctuate around 78,350 yuan/mt. The price spread between futures contracts (BACK) for the next month fluctuated within 330-370 yuan/mt.

       During the day, spot premiums were quoted at high levels, but due to limited overall market liquidity, spot premiums remained firm. In the morning session, suppliers quoted premiums of 180-200 yuan/mt for mainstream standard-quality copper with invoices dated next month, and 200-240 yuan/mt for high-quality copper. Copper from Dajiang HS, Zhongtiaoshan PC, Tiefeng, Zijin, and imported Jinguan arrivals were quoted at premiums of 150-180 yuan/mt. As copper prices rose, downstream counter-offers became more pronounced, and the center of trading prices declined. Mainstream standard-quality copper premiums were 150-180 yuan/mt, high-quality copper premiums were 180-200 yuan/mt. SX-EW copper supply was tight, with non-registered copper trading near 60 yuan/mt.

       Tomorrow, additional imported arrivals are expected, and importers' efforts to sell for cash will continue to pressure spot premiums downward. Spot premiums are expected to decline tomorrow.