The price spread between futures contracts widened as the delivery month approached, and Shanghai spot copper premiums collapsed [SMM Shanghai spot copper]

SMM News on July 10:

       Today, SMM reported that spot premiums for #1 copper cathode against the July 2507 contract ranged from a discount of 30 yuan/mt to a premium of 60 yuan/mt, with an average premium of 15 yuan/mt, a decrease of 55 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 78,490-78,740 yuan/mt. In the morning session, SHFE copper fluctuated around 78,600 yuan/mt and began to rise to a high of 78,690 yuan/mt in the second session. The price spread between futures contracts (BACK) for the next month fluctuated within 260-300 yuan/mt.

       During the day, spot premiums for SHFE copper collapsed, with the futures market declining and the price spread between futures contracts expanding to over BACK 250 yuan/mt. As the contract rollover approached, suppliers actively exported their cargoes, causing premiums to drop sharply. Downstream buyers also took advantage of the situation to drive down prices. Mainstream standard-quality copper premiums fell from 40-80 yuan/mt to around parity, with discounted cargoes appearing near 11 a.m. High-quality copper, such as Jinchuan (plate), also traded at premiums of 20-60 yuan/mt. Prices for non-registered and other cargoes fell sharply, with discounts exceeding 200 yuan/mt. Other cargoes, such as those traded in Changzhou, were priced at discounts of 80-40 yuan/mt.

        Looking ahead to tomorrow, spot premiums for SHFE copper are expected to decline further amid a firm price spread between futures contracts.