Inventory buildup occurred over the weekend, but suppliers were not in a hurry to sell. Shanghai spot copper premiums stabilized [SMM Shanghai spot copper]

SMM News on August 4:

        Today, the spot premiums for SMM #1 copper cathode against the August 2508 contract were reported at a range of 140-220 yuan/mt, with an average premium of 180 yuan/mt, marking an increase of 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,350 to 78,490 yuan/mt. In the morning session, the SHFE copper 2508 contract gradually rose from around 78,160 yuan/mt to 78,260 yuan/mt, closing at 78,260 yuan/mt. The price spread between futures contracts for the next month was almost flat, showing a BACK structure of 10-20 yuan/mt. The import loss for SHFE copper in the current month narrowed to within 500 yuan/mt.

        In the morning session, suppliers quoted mainstream standard-quality copper at premiums of 170-260 yuan/mt, but transactions were hard to come by at the 260 yuan/mt premium, leading to a downward adjustment in the center. In Changzhou, transactions were concluded at premiums of 80-100 yuan/mt, with downstream enterprises making just-in-time procurement. After high-quality copper such as Jinchuan (plate) was quickly traded at a premium of 200 yuan/mt, suppliers refused to budge on prices and held back on sales. In the second trading session, suppliers quoted premiums above 220 yuan/mt. As the BACK structure for the next month flattened, suppliers were unwilling to continue selling at low prices.

       Over the weekend, Shanghai's inventory increased by 8,100 mt to 84,000 mt, with most of the increase coming from imported supplies. However, importers were not in a hurry to sell today. With the pressure of imported shipments this week, the center for spot premiums of SHFE copper may decline.