Supplier sentiment eases, Shanghai spot copper premiums remain firm [SMM Shanghai spot copper]

SMM News on July 29:

       Today, SMM #1 copper cathode spot prices against the August 2508 contract were quoted at a premium of 80-140 yuan/mt, with an average premium of 115 yuan/mt, up 15 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 78,950-79,100 yuan/mt. In the morning session, the SHFE copper 2508 contract fluctuated between 78,870-79,950 yuan/mt, rising slightly after 11 a.m. and closing at 78,940 yuan/mt. The Contango price spread between futures contracts for the next month fluctuated between C40-C10 yuan/mt.

       Trading sentiment was poor during the day, with the purchasing sentiment index at 3.12, down 0.02 from yesterday, and the sales sentiment index at 3.22, down 0.09 from yesterday. As the month-end approaches, the market has largely ceased large-scale operations after completing long-term contract deliveries. Sales sentiment weakened during the day, and market liquidity was tight, with suppliers refusing to budge on prices, holding firm at around 70 yuan/mt. Mainstream standard-quality copper was quoted at a premium of around 80-120 yuan/mt. After the morning session's 70 yuan/mt premium cargo was snapped up, prices were largely held firm at around 100 yuan/mt. High-quality copper, such as Jinchuan and Guixi, was quoted at a premium of over 100 yuan/mt, with limited supply but weak purchasing demand. Non-registered cargo was firm, quoted at a discount of around 80-50 yuan/mt.

       Looking ahead to tomorrow, trading sentiment is expected to remain weak. However, with limited supply replenishment in the market and the persistence of the Contango structure, suppliers are expected to have low willingness to lower prices, limiting the downward potential of spot premiums.