Trading collapsed, with both trading volume and price of Shanghai spot copper falling [SMM Shanghai spot copper]

SMM News on July 7:

        Today, SMM reported that the spot premium for #1 copper cathode against the SHFE copper 2507 contract for the current month ranged from a premium of 40 yuan/mt to a premium of 130 yuan/mt, with an average premium of 85 yuan/mt, a decrease of 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 79,660 yuan/mt to 79,930 yuan/mt. In the morning session, the SHFE copper 2507 contract dipped to 79,570 yuan/mt before rallying with reduced positions, briefly touching a high of 79,850 yuan/mt in the morning before quickly giving back gains, closing at 79,750 yuan/mt. The price spread between futures contracts (BACK) for the next month gradually narrowed from 250 yuan/mt to 190 yuan/mt.

        During the day, suppliers continued to actively unload their inventory, with market transaction prices continuing to fall. Transactions in the Changzhou region were generally below parity. Mainstream standard-quality copper suppliers offered quotes around a premium of 70 yuan/mt, but transactions were sparse. High-quality copper was fully transacted at premiums of 100-120 yuan/mt. Downstream players were notably active in position adjustments during the day, with suppliers unloading inventory such as Dajiang HS, Tiefeng, and Yuguang near parity prices. Imported sources like OLYDA were offered at discounts of 30 to 20 yuan/mt. There were still Russian and Myanmar sources in the market, dragging down the prices of non-registered and SX-EW copper.

        Looking ahead to tomorrow, with several trading days remaining until delivery, it is expected that when the price spread between futures contracts (BACK) for the next month exceeds 200 yuan/mt, suppliers will continue to actively unload their inventory, and there is still a possibility for spot premiums for SHFE copper to fall further.