Warrant outflows, price spread between futures contracts widens, Shanghai spot copper premiums continue to decline [SMM Shanghai spot copper]

Published: Jun 20, 2025 13:21

Save

[SMM spot copper] Looking ahead to next week, it is understood that as the semi-annual settlement approaches, most enterprises have a need for payment collection. It is expected that the demand for enterprises to ship goods for cash will increase next week, and spot premiums will fall further.

SMM News on June 20:

Today, SMM reported spot premiums for #1 copper cathode against the July 2025 (2507) contract at 80-160 yuan/mt, with an average premium of 120

yuan/mt, a decrease of 25 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,240 to 78,560 yuan/mt. In the early morning session, SHFE copper prices briefly surged to 78,450 yuan/mt before pulling back, and then continued to decline, testing the 78,160 yuan/mt level near 11 a.m., closing at 78,120 yuan/mt in the morning session. The BACK price spread between futures contracts continued to widen, fluctuating between 200-220 yuan/mt during the morning trading session.

Spot premiums fell further during the day, as the widening price spread between futures contracts prompted some suppliers to offer discounts on spot premiums. Meanwhile, the continuous outflow of warrants led to a decline in spot transactions. In the early morning session, suppliers quoted mainstream standard-quality copper at premiums of 120-160 yuan/mt and high-quality copper at 140-180 yuan/mt. However, transactions quickly concentrated at premiums of 120-150 yuan/mt. Subsequently, cargoes from producers such as Tiefeng, Honglu, Dajiang PC, and Yuguang were actively traded in the Changzhou area at premiums ranging from 40-80 yuan/mt. Due to maintenance at rod mills in the Jiangsu region, purchasing sentiment was low during the day. Non-registered cargoes continued to be quoted at discounts, with transactions occurring at around a 50 yuan/mt discount.

Looking ahead to next week, it is reported that with the semi-annual settlement approaching, most enterprises have cash collection needs. It is expected that the demand for enterprises to sell goods for cash will increase next week, and spot premiums will fall further.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

16 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

16 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

16 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

16 hours ago