According to SMM, based on the notice "On Standardizing Policies for Attracting Investment" (Notice No. 770 of 2025) issued by four national ministries and commissions including the National Development and Reform Commission, local governments were required to standardize their policies for attracting investment. Additionally, any non-compliant contracts signed after May 2024 needed to be terminated by August 31, 2025. However, in mid-August, secondary copper rod enterprises and scrap anode plate producers across the country stated that they had only become aware of the notice but had not yet received specific instructions from relevant authorities. Despite this, production at many companies had already begun to change. Therefore, the SMM recycling resources team headed to Jiangxi, visiting enterprises directly to gain a comprehensive understanding of how policy changes were impacting businesses

[SHFE Copper Spot] Looking ahead to tomorrow, with current high copper prices and weakening downstream buying, but the occasional appearance of a Contango structure in the near-month contracts makes suppliers unwilling to sell at lower prices, spot premiums are expected to have limited downside room.

In North China, #1 copper cathode spot prices against the front-month contract ranged from a discount of 90 yuan/mt to a discount of 50 yuan/mt, with an average discount of 70 yuan/mt, up 10 yuan/mt from the previous trading day. The transaction price was 79,310-79,460 yuan/mt, with an average price of 79,385 yuan/mt, up 210 yuan/mt from the previous trading day.

SMM Morning Meeting Summary: LME copper was closed overnight. The most-traded SHFE copper 2510 contract opened and hit a low of 79,600 yuan/mt, touched a high of 79,810 yuan/mt at the beginning of the session, and then fluctuated rangebound to finally close at 79,640 yuan/mt, with a gain of 0.44%. Trading volume was 20,000 lots, and open interest was 173,000 lots.

[Shanghai Spot Copper] Looking ahead to tomorrow, after entering into transactions with cargoes dated next month, market trading activity is expected to decrease. Maintenance at northern smelters will reduce the supply coming to Shanghai. It is anticipated that, against a backdrop of limited domestic supply, spot premiums for SHFE copper will remain firm.

In North China, #1 copper cathode spot prices against the front-month contract ranged from a discount of 70-50 yuan/mt, with an average discount of 60 yuan/mt, down 10 yuan/mt from the previous trading day. The transaction price was 78,580-78,660 yuan/mt, with an average price of 78,620 yuan/mt, up 30 yuan/mt from the previous trading day.

Futures: Last Friday night, LME copper opened at $9,739/mt, dipped to a low of $9,708/mt in early trading, then fluctuated upward throughout the session, reaching a high of $9,813.5/mt near the close.