Increased inventory from imports, beware of falling SHFE copper spot premiums [SMM Shanghai Spot Copper]

SMM August 18 News:

       Today, SMM #1 copper cathode spot prices against the current month 2509 contract were at a premium of 170-280 yuan/mt, with an average quote at a premium of 225 yuan/mt, up 45 yuan/mt from the previous trading day; SMM #1 copper cathode prices were 79,160-79,400 yuan/mt. In the morning, the SHFE copper 2509 contract fluctuated around 79,080-79,120 yuan/mt before falling below 79,000 yuan/mt. The inter-month price spread showed a 10-30 BACK; today, the import window for Shanghai spot copper opened, with a profit of 200 yuan/mt.

       During the day, spot quotes officially began against the SHFE copper 2509 contract. Concentrated arrivals over the weekend led to a significant increase in inventory in the Shanghai area. Suppliers actively sold imported cargoes, but domestic supply remained limited, keeping spot premiums firm. The purchasing sentiment for copper cathode in the Shanghai area was 3.18, and the selling sentiment was 3.15. During the morning trading session, mainstream standard-quality copper traded at a premium of 170-220 yuan/mt, while in Changzhou, it traded at a premium of 120-150 yuan/mt; non-registered and other types traded near parity. Registered SX-EW copper finally appeared in the domestic trade market, with SPENCE and others at a premium of 100-120 yuan/mt.

      Looking ahead to tomorrow, as imported copper continues to arrive, there is expected to be pressure on sales, and there is a risk that spot premiums for SHFE copper will fall.