Copper Prices Rose, Shanghai Spot Copper Also Surged, Mainly Driven by Copper Shortage [SMM Shanghai Spot Copper]

SMM August 29 News:

        Today, SMM's #1 copper cathode spot prices against the front-month 2509 contract were quoted at a premium of 140-360 yuan/mt, with the average premium at 45 yuan/mt, up 45 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged between 79,250-79,530 yuan/mt. In early trading, SHFE copper rose continuously from 79,050 yuan/mt and fluctuated repeatedly within the 79,100-79,160 yuan/mt range, touching 79,160 yuan/mt multiple times. The price spread between nearby contracts fluctuated around BACK 20 yuan/mt, while import losses for the front-month contract narrowed to nearly 100 yuan/mt.

        Shanghai spot copper unexpectedly showed strong activity during the day, with improved purchasing sentiment among traders and downstream buyers. However, suppliers' willingness to sell declined toward month-end. The purchasing sentiment for copper cathode in Shanghai was 3.2, while sales sentiment also stood at 3.2. . At market open, suppliers quoted standard-quality copper at around a premium of 180 yuan/mt, followed by transactions concluded at premiums of 140-180 yuan/mt. In Changzhou, initial offers were near a premium of 140 yuan/mt, with deals quickly done at 120 yuan/mt. During the second trading session, low-priced supplies became scarce as most firms showed low willingness to sell. Shipments of high-quality copper from Jinchuan and Guixi to Shanghai remained limited, creating scarcity that pushed premiums above 300 yuan/mt, with bulk quantities hard to obtain. Traders actively purchased cargoes.

       Looking ahead to next week, as September begins, maintenance at northern smelters will further reduce shipments to Shanghai. Meanwhile, Jiangxi's copper scrap policy will significantly impact production of scrap-derived cathode next month, potentially driving premiums higher. However, concerns remain about potential import supply pressure if the arbitrage window opens. Suppliers are expected to maintain their reluctance to budge on prices early in the week.