Suppliers actively sell to convert into cash, and SHFE copper premium is under pressure and declines [SMM Shanghai spot copper]

SMM News on June 23:

       Today, SMM #1 copper cathode spot prices against the front-month 2507 contract were quoted at premiums of 60-120 yuan/mt, with an average premium of 90 yuan/mt, down 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,260 to 78,390 yuan/mt. In the morning session, SHFE copper prices slid from 78,470 yuan/mt, briefly touching a low of 78,190 yuan/mt before rebounding to 78,270 yuan/mt near the morning close. The BACK price spread between futures contracts for the following month fluctuated around 200 yuan/mt, and the import loss for the SHFE copper front-month contract was nearly 1,000 yuan/mt.

       Trading sentiment for Shanghai spot copper was weak today. In the early morning session, suppliers quoted premiums of 80-120 yuan/mt for standard-quality copper, 120-150 yuan/mt for high-quality copper, and around 80 yuan/mt for brands such as Tiefeng, Dajiang PC, and Japan and South Korea. Subsequently, transactions in the Changzhou area began at a premium of 50 yuan/mt, dragging down the market transaction price. Mainstream standard-quality copper was traded at premiums of 60-80 yuan/mt, while high-quality copper was traded at a premium of 100 yuan/mt, although overall supply remained relatively tight. Non-registered copper was traded at discounts of 70 to 40 yuan/mt.

       Looking ahead to tomorrow, the significant decrease in inventory in the Shanghai area over the weekend was mainly due to the gradual outflow of delivery warrants. However, the market will still face pressure to sell and collect funds tomorrow, and spot premiums are expected to decline further.