"Missing" supply returns, sentiment for Shanghai spot copper procurement rises [SMM Shanghai spot copper]

SMM News on August 13:

       Today, SMM #1 copper cathode spot prices against the August 2508 contract were reported at a premium of 140-260 yuan/mt, with an average premium of 200 yuan/mt, unchanged from the previous trading day. The SMM #1 copper cathode price range was 79,390-79,560 yuan/mt. In the morning session, SHFE copper fluctuated rangebound between 79,240-79,330 yuan/mt and closed at 79,280 yuan/mt. The next-month contract continued to exhibit a contango structure, fluctuating between C40 and C10.

       Spot premiums remained firm throughout the day. Despite some imported supply replenishment, traders continued to purchase amid a favorable contango structure and strong performance in the bill market. The purchase sentiment for copper cathode in the Shanghai area was 3.19, while the sales sentiment was 3.16. During the first trading session, Xiangguang, Lufang, JCC, etc., offered premiums of 150-200 yuan/mt, with transactions concluded near a premium of 50 yuan/mt in Jiangsu and other regions. Subsequently, supply tightened, and prices rose to 80-100 yuan/mt. In the second trading session, trade flows weakened relatively, with mainstream traded supply concluding at premiums of 150-170 yuan/mt. There was some replenishment of CCC-P supply for high-quality copper during the day, but overall supply was limited, and transactions were concluded at premiums of 230-260 yuan/mt. SX-EW copper finally saw ESOX supply, with morning quotes at a premium of 40 yuan/mt, which were later driven down to premiums of 20-30 yuan/mt for transactions.

       Looking ahead to tomorrow, it is expected that imported supply will continue to replenish, putting pressure on subsequent premiums. However, with domestic supply tightening as the delivery date approaches, it is anticipated that spot transactions will remain firm, with limited room for a decline in spot premiums.