Sentiment for shipping on the last trading day weakened, with spot prices against the next-month contract quoted high but traded low [SMM Shanghai spot copper]

SMM News on June 16:

       Today, spot prices for SMM #1 copper cathode against the front-month 2506 contract were quoted at a discount of 20 to a premium of 80 yuan/mt, with an average quoted premium of 30 yuan/mt, up 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,490 to 78,800 yuan/mt. In the morning session, the SHFE copper 2506 contract dipped to 78,430 yuan/mt before rallying, trading above 78,730 yuan/mt after 11 a.m. The SHFE copper 2507 contract briefly touched 78,160 yuan/mt before continuing to rise above 78,500 yuan/mt. Today marked the last trading day for the SHFE copper 2506 contract, and according to SMM's #1 copper cathode methodology, quotes were still made against the front-month contract. During the morning trading session, the BACK price spread between futures contracts for the next month fluctuated mainly within 250-280 yuan/mt.

       In the morning session, suppliers quoted a premium of around 200 yuan/mt for Tiefeng copper, which was snapped up by the market instantly. Subsequently, market supplies were quoted at premiums of 230-280 yuan/mt. High-quality copper supplies remained tight, with premiums of 330-350 yuan/mt. BMK, BOR, etc., were quoted at premiums of 160-180 yuan/mt. The market primarily quoted against the SHFE copper 2507 contract today.

       Due to contract rollover today, most suppliers were unwilling to sell at low prices, and selling sentiment declined. Over the weekend, several thousand tons of Russian copper arrived, with transactions made at premiums of 100-120 yuan/mt. It is expected that spot premiums will start above 200 yuan/mt tomorrow.