The price spread between futures contracts narrows, suppliers refuse to budge on prices. Shanghai spot copper remains firm during the day [SMM Shanghai spot copper]

SMM News on July 14:

       Today, spot prices of SMM #1 copper cathode against the current-month 2507 contract were reported at a discount of 60 to a premium of 20 yuan/mt, with an average price at a discount of 20 yuan/mt, up 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,370 to 78,540 yuan/mt. In the morning session, SHFE copper futures rose continuously from around 78,300 yuan/mt to above 78,500 yuan/mt, touching 78,550 yuan/mt near the close of the morning session.

       During the day, the sentiment for selling in the market remained high, with suppliers actively selling and switching lines. However, the buying sentiment downstream was not as strong as at the end of last week. Nevertheless, as the price spread between futures contracts continued to narrow, suppliers did not further lower their quotes. Mainstream standard-quality copper was quoted at a discount of 60-40 yuan/mt, while high-quality copper was quoted at a premium of 150-200 yuan/mt against the 2508 contract. Russian-origin cargoes in the market were still difficult to sell, with quotes at around a discount of 250 yuan/mt.

       Looking ahead to tomorrow, with the price spread between futures contracts continuing to narrow, suppliers are expected to maintain firm quotes tomorrow, mostly quoting against the 2508 contract, with premiums expected to start from 150-200 yuan/mt.