Copper prices surged, coupled with imported copper replenishment, causing spot premiums of SHFE copper to decline [SMM Shanghai spot copper]

SMM News on August 5:

        Today, the spot premium for SMM #1 copper cathode against the August 2508 contract was reported at a range of 80-180 yuan/mt, with an average premium of 130 yuan/mt, a decrease of 50 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,530 to 78,700 yuan/mt. In the morning session, the SHFE copper 2508 contract rose from 78,400 yuan/mt to 78,520 yuan/mt, before giving back gains near the morning close, ending at 78,470 yuan/mt. The price spread between futures contracts for different months was almost flat, and the import loss for SHFE copper in the current month widened to around 600 yuan/mt.

       The spot premium for SHFE copper "finally" fell today. As copper prices rose to around 78,500 yuan/mt, market consumption sentiment weakened, and coupled with import supplements, suppliers' willingness to sell increased. Mainstream standard-quality copper premiums fell from 140-180 yuan/mt to 80-120 yuan/mt. High-quality copper remained in tight supply with premiums of 180-200 yuan/mt, while some SX-EW copper arrived with premiums of around 20 yuan/mt.

       Looking ahead to tomorrow, with copper prices returning above 78,500 yuan/mt, it will inevitably put pressure on downstream procurement. Currently, the circulation of non-registered supplies in the spot market has increased, and downstream buyers' willingness to purchase at lower prices has risen. It is expected that spot premiums may continue to decline tomorrow.