High copper prices and weak downstream restocking sentiment, SHFE copper premium remains stagnant [SMM Shanghai spot copper]

SMM News on May 27:

       Today, SMM reported that spot #1 copper cathode was quoted at a premium of 100-200 yuan/mt against the current-month 2506 contract, with an average quoted premium of 150 yuan/mt, unchanged from the previous trading day. The SMM #1 copper cathode price ranged from 78,430 to 78,590 yuan/mt. In the morning session, SHFE copper prices moved downwards after a higher opening, initially opening higher at 78,480 yuan/mt and then declining in a stepped manner, mainly fluctuating around 78,300-78,400 yuan/mt.

        Copper prices remained at a high level, with intraday consumption sentiment weakening compared to yesterday. Imported copper continued to be offered in the market, with lower premiums in the Changzhou region dragging down premiums in the Shanghai region. In the morning session, there were hardly any quotes for mainstream standard-quality copper, while premiums for brands like Tiefeng and Japanese copper were around 100 yuan/mt. High-quality copper was in short supply, with premiums ranging from 180-200 yuan/mt. Subsequently, trading activity weakened, and non-mainstream cargoes were traded at premiums of 60-100 yuan/mt. Mainstream standard-quality copper suppliers had low willingness to sell and held firm on prices above 120 yuan/mt. SX-EW cargoes remained tight.

       As the Dragon Boat Festival approaches, procurement in the spot market has not shown a significant pre-holiday stockpiling sentiment. However, a large volume of imported copper continues to arrive, basically meeting downstream demand. It is expected that spot premiums will remain stable tomorrow.