The brand price spread has narrowed, but copper prices have risen and market trading sentiment has weakened [SMM Shanghai spot copper]

SMM News on July 23:

        Today, the spot prices of SMM #1 copper cathode against the August 2508 contract were reported at a premium of 120-240 yuan/mt, with an average premium of 180 yuan/mt, a decrease of 60 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 79,660 to 79,920 yuan/mt. In the morning session, the SHFE copper futures price slipped from 79,900 yuan/mt to 79,540 yuan/mt, with a Contango price spread between futures contracts of C100-C60 yuan/mt for the next month.

        During the day, copper prices remained above 79,500 yuan/mt, slightly dampening downstream purchasing sentiment. Coincidentally, smelters shipped goods to the Shanghai area, supplementing domestic supply, which led to a decline in spot premiums. In the morning session, suppliers quoted mainstream standard-quality copper at a premium of 160-180 yuan/mt, which later fell to a premium of 120-160 yuan/mt for transactions. High-quality copper was quoted at a premium of 260 yuan/mt but received no inquiries, and was subsequently adjusted down to a premium of 200-240 yuan/mt. SX-EW copper, such as that from Myanmar, was trading near parity, while non-registered copper continued to show a slight discount. In Changzhou, transactions were concluded at a premium of 60-100 yuan/mt.

        Looking ahead to tomorrow, with copper prices remaining high, downstream purchasing is expected to be as needed. Given the current Contango structure, suppliers are reluctant to sell at excessively low premiums, and it is anticipated that tomorrow's quotes will only see a slight decrease from today's levels.