On the last trading day of the quarter at month-end, trading was in a tug-of-war, and Shanghai spot copper prices refused to budge [SMM Shanghai spot copper]

SMM News on June 30:

       Today, SMM #1 copper cathode spot prices against the SHFE copper 2507 contract for the current month were reported at premiums of 100-160 yuan/mt, with an average premium of 130 yuan/mt, up 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 79,860-80,120 yuan/mt. In the morning session, SHFE copper futures fluctuated frequently, briefly surging to 80,080 yuan/mt before plummeting to a low of 79,690 yuan/mt. Subsequently, bears reduced their positions, causing the futures market to rebound, and by the morning close, it returned to the 80,000 yuan/mt level. The BACK spread between consecutive months widened, fluctuating between 150-210 yuan/mt in the morning session.

       As it was the end of the quarter, most enterprises did not participate in spot buying and selling. Some suppliers maintained a firm stance on prices. In the early morning session, Tiefeng-type copper was snapped up at premiums of 60-80 yuan/mt, followed by premiums of 90-100 yuan/mt. Mainstream standard-quality copper premiums ranged from 100-140 yuan/mt, while high-quality copper premiums ranged from 140-160 yuan/mt. BMK and other brands saw poor trading at premiums of 40 yuan/mt, with non-registered brands all quoting premiums. Downstream buyers offered discounts, but suppliers' willingness to sell decreased.

       Trading was sluggish during the day. In the last few trading days of the month, traders actively sought low-priced cargoes. It is expected that spot quotes will remain firm on the first trading day of July tomorrow, but attention should be paid to the suppression of spot premiums by the widening of the price spread between futures contracts.