[SMM spot copper] Looking ahead to tomorrow, copper prices have once again touched 79,000 yuan/mt. The purchasing sentiment is low during the day, and suppliers are holding inventory under a Contango structure, refusing to budge on prices for sources with good liquidity. However, some suppliers with a need to sell are offering low-priced "stuff" to downstream buyers, leading to an excessive price spread between brands. It is expected that there will be limited downside room for a significant drop in spot premiums for SHFE copper tomorrow.

Today, spot #1 copper cathode in North China traded at a discount of 140 yuan/mt to 100 yuan/mt against the front-month contract, with an average discount of 120 yuan/mt, unchanged from the previous trading day. The transaction price ranged from 78,810 yuan/mt to 78,920 yuan/mt, with an average price of 78,865 yuan/mt, up 575 yuan/mt from the previous trading day.

SMM Morning Meeting Summary: On Friday evening, LME copper opened at $9,700.5/mt, touching a low of $9,691.5/mt shortly after the opening bell. It then fluctuated upward, reaching a high of $9,780/mt near the close, and finally closed rangebound at $9,768/mt, up 1.01%. Trading volume reached 13,000 lots, and open interest stood at 267,000 lots. On Friday evening, the most-traded SHFE copper 2509 contract opened at 78,420 yuan/mt, trading sideways and touching a low of 78,320 yuan/mt shortly after the opening bell. It then surged straight up near the close, reaching a high of 79,090 yuan/mt, and finally closed at 78,940 yuan/mt, up 0.64%. Trading volume reached 30,000 lots, and open interest stood at 158,000 lots.

The operating rate of secondary copper rod in July was 30.9%, higher than the expected 29.4%, down 2.71% MoM and 5.17% YoY. The secondary copper rod industry was deeply trapped in a multiple dilemma of "supply tightening - weak demand - policy disruptions" in July.