Copper Prices Dampened Spot Order Purchases, SHFE Copper Spot Premiums Decline [SMM Shanghai Spot Copper]

SMM, August 26:

       Today, SMM reported that spot prices of #1 copper cathode against the on-month 2509 contract ranged from a premium of 80 yuan/mt to a premium of 180 yuan/mt, with an average premium of 130 yuan/mt, down by 10 yuan/mt from the previous trading day. SMM #1 copper cathode prices stood at 79,480-79,690 yuan/mt. In the morning session, the SHFE copper 2509 contract fell continuously from 79,560 yuan/mt and then fluctuated around 79,510 yuan/mt before dropping to around 79,420 yuan/mt after 10:30 a.m. The price spread between futures contracts shifted directly between Contango and BACK, and spot imports of SHFE copper incurred losses around 250 yuan/mt.

       Trading with invoices dated next month officially commenced today, and market sentiment for selling improved compared to yesterday. In Shanghai, the sentiment for purchasing copper cathode was 3.15, while the sentiment for selling was 3.21. . In Shanghai, mainstream standard-quality copper was traded at premiums ranging from 80 yuan/mt to 120 yuan/mt, with cargoes with invoices dated next month generally traded at premiums between 80 yuan/mt and 100 yuan/mt. The supply of high-quality copper slightly increased, with cargoes with invoices dated next month attracting transactions at a premium of 150 yuan/mt. Registered SX-EW copper was scarce during the day, while non-registered cargoes with invoices dated next month were traded at discounts ranging from 60 yuan/mt to 40 yuan/mt.

       Looking ahead to tomorrow, with copper prices currently high, downstream buying interest has weakened. However, the occasional occurrence of a Contango structure in nearby months has made suppliers reluctant to sell at lower prices. It is expected that the downside room for spot premiums will be limited.