SMM News on July 9:
Today, spot #1 copper cathode against the current-month 2507 contract was quoted at a premium of 20-120 yuan/mt, with an average premium of 70 yuan/mt, down 15 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 79,040 to 79,340 yuan/mt. The US is expected to impose a 50% tariff on copper, which will once again reverse the global trade flow of copper cathode. Overnight, SHFE copper briefly surged to 80,300 yuan/mt near the close, slipped instantly at the start of the morning session, and then continued to decline to 78,750 yuan/mt, closing at 78,940 yuan/mt in the morning session. The BACK price spread between futures contracts for different months widened from 200 yuan/mt to 360 yuan/mt.
Copper prices fell during the day, and downstream procurement volumes significantly increased compared to the beginning of the week, with active pricing. However, most downstream players remained cautious and did not show overbought sentiment. Morning quotes from suppliers were almost the same as yesterday, with mainstream on-par cargo still in short supply. Transactions in Changzhou were concluded near parity, while Shanghai saw more pronounced price-driving down. Non-registered cargo, such as that from Russia, was quoted as low as a discount of 160 yuan/mt.
Looking ahead to tomorrow, it is expected that procurement demand will be difficult to fully emerge amid bearish sentiment from downstream players. Moreover, against the backdrop of a widening price spread between futures contracts for different months, downstream players will continue to drive down purchasing prices. It is expected that spot premiums will remain under pressure tomorrow.
