As the delivery date approaches, suppliers are unwilling to sell at low prices, and the premium rises [SMM Shanghai spot copper]

SMM News on June 9:

       Today, spot prices of SMM #1 copper cathode against the SHFE copper 2506 contract for the current month were quoted at a premium of 20-150 yuan/mt, with an average quoted premium of 85 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,740 to 79,010 yuan/mt. In the morning session, the SHFE copper 2506 contract briefly dipped to 78,660 yuan/mt before rising to 78,860 yuan/mt, and then continued to pull back. The BACK price spread between futures contracts for the next month remained fluctuating around 100 yuan/mt, with no significant upward movement for the time being. The import loss for SHFE copper for the current month narrowed to around 1,150 yuan/mt compared to a few days ago, with major smelters largely locking in their export volumes.

       During the day, issues with brand price spreads persisted, downstream procurement sentiment remained weak, and suppliers did not continue to offer significant discounts as the delivery date approached. In the morning session, brands such as Lufang, Xiangguang, and JCC continued to be quoted at a premium of 120-150 yuan/mt. High-quality copper brands like Jinchuan and Guixi were also quoted at a premium of 120-150 yuan/mt, with small volumes of Jinchuan copper later traded at a lower premium of 110 yuan/mt and Guixi copper at 130 yuan/mt. Subsequently, the premiums returned to 140-160 yuan/mt. Cargoes from brands such as Tiefeng and Dajiang HS were traded at a discount of -10 to 30 yuan/mt.

       Looking ahead to tomorrow, as the delivery date approaches, low-priced cargoes will be hard to come by. In the latter half of the week, spot transactions will be guided by the price spread between futures contracts. It is expected that low-priced cargoes will continue to be traded at a small premium tomorrow.