Copper prices stabilize at highs, while Shanghai spot copper transactions weaken [SMM Shanghai spot copper]

SMM News on July 3:

       Today, the spot prices of SMM #1 copper cathode against the July 2507 contract were reported at a premium of 70-160 yuan/mt, with an average premium of 115 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 80,870-81,090 yuan/mt. In the morning session, the SHFE copper 2507 contract slipped from above 81,000 yuan/mt, with continuous long position liquidation driving the futures market down to 80,760 yuan/mt before gradually recovering to around 80,900 yuan/mt. The BACK price spread between futures contracts fluctuated within 210-250 yuan/mt.

       Trading sentiment was sluggish during the day. After the initial morning quotes, suppliers continued to swiftly lower their prices, reverting to yesterday's price range, but transactions remained unsatisfactory. In the morning, suppliers quoted mainstream parity at 80-100 yuan/mt, with subsequent premiums of 70 yuan/mt being purchased by the market. High-quality copper supply remained tight, with premiums of 130-160 yuan/mt. There was Myanmar-origin SX-EW copper available during the day, trading at a discount of 20 yuan/mt to parity. Non-registered copper supply was not abundant, trading at a discount of around 50 yuan/mt.

        Tomorrow is Friday. Downstream purchasing sentiment remains low amid high copper prices. There are expected arrivals of imported copper, and overall supply is not tight. It is anticipated that tomorrow's trading volume will be similar to today's.