Enterprise inventory clearance has basically ended, and SHFE copper spot premiums have stopped falling and stabilized [SMM Shanghai spot copper]

SMM News on June 25:

       Today, spot prices for SMM #1 copper cathode against the 2507 contract for the current month were reported at parity to a premium of 60 yuan/mt, with an average premium of 30 yuan/mt, down 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,530 to 78,630 yuan/mt. In the morning session, the SHFE copper 2506 contract rose slowly, touching 78,600 yuan/mt before starting to retreat. The BACK price spread between futures contracts for the next month narrowed to 130-150 yuan/mt.

       Spot premiums stopped falling during the day, mainly because most enterprises had gradually completed their inventory clearance plans, and currently, the market had limited available supply. Premiums stabilized near parity. High-quality copper was traded at 40-60 yuan/mt, while mainstream standard-quality copper was traded at parity to a premium of 20 yuan/mt. Low-priced supply at a discount of around 20 yuan/mt in the Changzhou area was snapped up immediately. Non-registered copper was traded firmly at a discount of 80 to 60 yuan/mt.

       Tomorrow, spot premiums are expected to be traded near parity, but prices for some tight supply sources will rise.