Domestic circulating supply is tight in Shanghai, and Shanghai spot copper premiums have risen [SMM Shanghai spot copper]

SMM News on August 11:

        Today, SMM #1 copper cathode spot premiums against the August 2508 contract were reported at a premium of 70-230 yuan/mt, with an average premium of 150 yuan/mt, up 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 79,020 to 79,280 yuan/mt. Futures prices surged, rising from 78,800 yuan/mt in the morning to 79,000 yuan/mt, with a peak of 79,100 yuan/mt reached during the morning trading session. The price spread between futures contracts shifted to a Contango structure, mainly fluctuating between a discount of C40-C20 yuan/mt.

        During the day, the price spreads among various brands widened again. Despite some domestic supply replenishment, it failed to meet the market's demand for a certain type of traded copper. During the main trading session, brands like Xiangguang, Lufang, and JCC were quoted at premiums of 130-150 yuan/mt. Due to the price spread structure, most suppliers were reluctant to sell, resulting in few actual transactions. In Changzhou, the main trading premiums were 40-60 yuan/mt. High-quality copper was in short supply, with brands like Jinchuan quoted at a premium of 230 yuan/mt and Guixi at 260-300 yuan/mt, but actual trading volumes were low.

        Looking ahead to tomorrow, with copper prices once again touching 79,000 yuan/mt, purchasing sentiment during the day is low. The purchasing sentiment for copper cathode in Shanghai is 3.16, and the selling sentiment is 3.17 (historical data can be accessed through the database).
Suppliers are maintaining a firm stance on prices for cargo with good liquidity. Some suppliers with a need to unload inventory are offering cargo to downstream buyers at low prices, leading to large price spreads among brands. It is expected that there will be little downside room for a significant drop in SHFE copper spot premiums tomorrow.