Copper Prices Decline, Purchasing Sentiment Rises, SHFE Copper Spot Premiums Increase [SMM Shanghai Spot Copper]

SMM August 28 News:

        Today, SMM #1 copper cathode spot prices against the current month 2509 contract were at a premium of 130-280 yuan/mt, with an average quote of 205 yuan/mt, up 35 yuan/mt from the previous trading day; SMM #1 copper cathode prices were 79,080-79,300 yuan/mt. In the morning, SHFE copper futures rose from 78,900 yuan/mt to 79,020 yuan/mt and then weakened; the futures market declined, with significant position reductions in the morning. The price spread between futures contracts for the next month widened, fluctuating between B20-B50 yuan/mt; the import loss for SHFE copper for the current month narrowed to around 110 yuan/mt.

       During the day, as copper prices fell, procurement sentiment increased, and selling sentiment also rose; in Shanghai, the procurement sentiment for copper cathode was 3.19, and the selling sentiment was 3.22. In the first half of the week, the futures market remained above 79,000 yuan/mt, and downstream buyers maintained just-in-time procurement. As copper prices fell during the day, downstream procurement sentiment increased, and suppliers raised their prices accordingly. Mainstream standard-quality copper traded at a premium of 130-160 yuan/mt in the morning, while in Jiangsu, it traded at a premium of 100-140 yuan/mt. Non-registered sources traded close to parity, and registered SX-EW sources traded at a premium of about 50 yuan/mt. High-quality copper was in short supply, with most of the previously available Guixi sources almost depleted, and prices held firm at a premium of 240-280 yuan/mt.

       Looking ahead to tomorrow, being the last trading day of the month, premiums are expected to be more contested, and SHFE copper spot premiums are expected to maintain today's trend.