SMM, June 3:
Today, SMM #1 copper cathode spot prices were quoted at a premium of 120-320 yuan/mt against the SHFE copper 2506 contract for the current month, with an average quoted premium of 220 yuan/mt, up 50 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 78,270-78,620 yuan/mt. Early in the morning session, the SHFE copper 2506 contract rapidly declined from 78,500 yuan/mt and continued to fall below 78,200 yuan/mt. The BACK price spread between futures contracts for the next month fluctuated by only 280 yuan/mt. The import loss for SHFE copper for the current month exceeded 1,000 yuan/mt per ton, necessitating close monitoring of smelter export activities.
There were significant differences in copper cathode prices among various brands during the day. Early in the session, suppliers quoted high-quality copper, such as Jinchuan (plate) and Guixi, at premiums of 320-370 yuan/mt, while Lufang, Xiangguang, and JCC were quoted at around 300 yuan/mt. In contrast, Tiefeng in Changzhou, Yuguang, and imported Jinguang Jinfeng in Shanghai were only quoted at around 150 yuan/mt. As low-priced supplies were traded, overall quoted premiums declined, with Jinchuan and others traded at 300 yuan/mt. JCC supplies were tight, and due to strong consumption at Jiangxi outlets, supplies arriving in Shanghai were limited, with transactions ranging from 200-250 yuan/mt during the day. Downstream consumption was sluggish on the first day after the holiday, with purchasing sentiment declining. As prices fell, downstream buyers became more price-sensitive. Entering the second trading session, Tiefeng, Dajiang PC, and others were traded at 100-120 yuan/mt, and supplies priced below 100 yuan/mt were also traded towards the end of the morning session. Non-registered copper was in short supply, with transactions occurring at premiums of 20-50 yuan/mt.
There are still imported supplies arriving tomorrow. Although supplies in the Shanghai area slightly decreased during the day, there will be additional inflows subsequently. It is expected that low-priced supplies will see double-digit transaction volumes tomorrow.
