Sales sentiment lifted, SHFE copper spot premiums were suppressed [SMM Shanghai spot copper]

SMM News on August 22:

       Today, the spot price of SMM #1 copper cathode against the August 2509 contract was reported at a premium of 80-220 yuan/mt, with an average premium of 150 yuan/mt, a decrease of 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,730 to 78,930 yuan/mt. In the morning session, the SHFE copper 2509 contract gradually pulled back from 78,780 yuan/mt, briefly dipping to 78,650 yuan/mt before rising to around 78,700 yuan/mt, closing at 78,700 yuan/mt. The price spread between futures contracts (BACK) for the next month continued to fluctuate slightly, trading within a range of BACK 10-30 yuan/mt during the morning session. The import profit margin for SHFE copper in the current month continued to expand by nearly 300 yuan/mt.

       Selling sentiment was strong during the day. With both domestic and imported supplies, suppliers actively sold, causing premiums to continue to decline. The procurement sentiment for copper cathode in Shanghai was 3.17, and the selling sentiment was 3.21. At the beginning of the trading session, suppliers quoted premiums of around 120 yuan/mt for mainstream standard-quality copper, with a small volume of transactions. Subsequently, the transaction center dropped to a premium of 100 yuan/mt, with a few suppliers offering discounts of 80 yuan/mt to downstream buyers. In Jiangsu, the transaction price was at a premium of 60-80 yuan/mt, with limited low-priced supplies available today.

       Looking ahead to next week, imports are expected to continue arriving, but domestic supplies will decrease correspondingly. Given the current narrow fluctuation in copper prices, it is expected that downstream buyers will continue to make just-in-time procurement, and spot transactions of SHFE copper will remain in a small premium range.