Today, spot #1 copper cathode in North China traded at a discount of 200 yuan/mt to 120 yuan/mt against the front-month contract, with an average discount of 160 yuan/mt, up 10 yuan/mt from the previous trading day. The transaction price ranged from 78,330 yuan/mt to 78,450 yuan/mt, with an average price of 78,390 yuan/mt, up 185 yuan/mt from the previous trading day.

[SMM Morning Meeting Summary: Copper Prices Surge, Suppliers Clear Inventories at Low Prices, Spot Premiums Decline] On June 24, spot prices of SMM #1 copper cathode against the 2507 contract for the current month were reported at parity to a premium of 80 yuan/mt, with an average premium of 40 yuan/mt, down 50 yuan/mt MoM. Looking ahead to today, as there are still inventory clearance and capital needs at the end of the quarter, it is expected that spot premiums may continue to decline today...

[Ceasefire Between Iran and Israel, Weakening US Dollar Index Support Copper Prices; Powell's Hawkish Remarks Spark Inflation Concerns] On the macro side, Trump announced a ceasefire between Iran and Israel. Following a phone call between the leaders of the US and Israel, Israel halted further military strikes against Iran. The Iranian president stated that Iran is ready to engage in dialogue at the negotiating table. The weakening US dollar index supported copper prices. Meanwhile, Powell remarked that the current policy is in a favorable position, allowing for a wait-and-see approach before considering interest rate adjustments. Moreover, the vast majority of officials believe that an interest rate cut later this year is appropriate. The US Fed's concerns about future inflation weighed on copper prices in late trading.

[SMM Analysis] On Friday evening last week, the price spread between futures contracts for the LME_CA_CASH contract and the July date suddenly surged to over $250/mt. By the day of publication, the LME copper CASH-July date price spread approached a backwardation of $275/mt. This fluctuation sparked various discussions in the US dollar copper market. Combined with the similar situation that occurred previously for LME aluminum, various speculations emerged. This article attempts to sort out the recent abnormal structure of LME copper based on some recent market anomalies.