Brand price spread narrows, Shanghai spot copper premiums fall [SMM Shanghai spot copper]

SMM News on July 24:

       Today, the spot premium for SMM #1 copper cathode against the August 2508 contract was reported at a range of 90-200 yuan/mt, with an average premium of 145 yuan/mt, down 35 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 79,690-79,900 yuan/mt. In the morning session, SHFE copper prices opened at 79,760 yuan/mt, then fluctuated between 79,600-79,700 yuan/mt. The Contango price spread between futures contracts in the morning fluctuated between a discount of 100 yuan/mt and a discount of 80 yuan/mt.

       During the day, the arrival of shipments at smelters alleviated the tight spot supply in the Shanghai area. Coupled with the continuous surge in copper prices, downstream purchasing sentiment was suppressed, with the purchasing sentiment index dropping to 3.01. The sales sentiment index rose to 3.25, guiding the spot premium for SHFE copper to decline. In the morning session, suppliers quoted mainstream premiums around 160 yuan/mt on par with the contract, with transactions later settling at a range of 100-120 yuan/mt. High-quality copper premiums dropped to around 180 yuan/mt. SX-EW copper supply was tight, with sales from Myanmar and other regions not lower than on par with the contract.

       Looking ahead to tomorrow, it is expected that the selling sentiment will remain high. However, as downstream buyers stock up for the weekend on Friday, it is anticipated that the decline in spot premiums will narrow.