Suppliers are unwilling to sell below parity, with the center of SHFE copper premium moving higher during the day [SMM Shanghai spot copper]

SMM News on June 10:

       Today, the spot price of SMM #1 copper cathode against the current-month 2506 contract was reported at a premium of 40-150 yuan/mt, with an average quoted premium of 95 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 79,230 to 79,390 yuan/mt. In the morning session, the SHFE copper 2506 contract tested 79,270 yuan/mt at the opening and then began to rise, subsequently testing above 79,230 yuan/mt multiple times. It surged to 79,310 yuan/mt near the close and settled at 79,300 yuan/mt. The BACK price spread between futures contracts for the next month continued to fluctuate within the range of 60-100 yuan/mt, with an import loss of approximately 1,400 yuan/mt for SHFE copper in the current month.

       As the delivery date approaches, the price spread between futures contracts has not shown significant improvement. Suppliers are holding firm on their quotes above parity and are unwilling to sell at a discount. Additionally, the price spread between standard-quality copper brands narrowed during the day. Brands such as Xiangguang and JCC were quoted at a premium of 60-80 yuan/mt, while supplies from Tiefeng, Jinguan, Jinchuan Yongchang, etc., were traded at a premium of 20-40 yuan/mt. A few supplies from Japan and South Korea brands were traded at parity to a premium of 10 yuan/mt. Both purchasing and sales sentiment improved during the day.

       Looking ahead to tomorrow, with the supply of standard-quality copper not expected to loosen in the latter half of the week, and downstream buyers generally bargaining down purchasing prices amid high copper prices, suppliers are reluctant to sell below parity as the delivery date approaches. It is reported that some Russian copper is expected to arrive in concentrated shipments by the end of the week, and downstream buyers are expected to be willing to purchase at lower prices.