On the first day of July, both the premium and the price spread between futures contracts rose, while the trading performance of Shanghai spot copper remained stagnant [SMM Shanghai spot copper]

SMM News on July 1:

       Today, spot prices of SMM #1 copper cathode against the SHFE copper 2507 contract are reported at a premium of 150-250 yuan/mt, with an average premium of 200 yuan/mt, up 70 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranges from 80,120 to 80,290 yuan/mt. In the morning session, the SHFE copper 2507 contract fell rapidly from 80,100 yuan/mt to a low of 79,950 yuan/mt, before rebounding to 80,040 yuan/mt near the morning close. The BACK price spread between futures contracts for the next month widened to 250 yuan/mt during the morning trading session.

       On the first trading day of H2, suppliers actively refused to budge on prices. In the early morning session, mainstream standard-quality copper was quoted at a premium of 240-280 yuan/mt, and high-quality copper at a premium of 280-300 yuan/mt, with few transactions occurring due to the high quotes. Subsequently, due to tight supply in Jiangsu, transactions were first concluded at a premium of around 200 yuan/mt in Jiangsu. In Shanghai, mainstream standard-quality copper fell to a premium of around 180 yuan/mt, with a few suppliers quoting at a premium of 150 yuan/mt. Imported brands such as Jinguang, Jintun, and Tiefeng were quoted at a premium of 100-120 yuan/mt.

        Looking ahead to tomorrow, the widening price spread between futures contracts is expected to partially suppress premiums. However, with copper prices hovering around the 80,000 yuan/mt threshold, market purchasing sentiment is expected to remain low, but transactions in the trade and speculative markets are expected to improve.