SMM September 1 report:
Today, SMM #1 copper cathode spot prices against the SHFE copper 2509 contract were quoted at a premium of 150-320 yuan/mt, with the average premium at 235 yuan/mt, down 15 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged between 79,710-80,090 yuan/mt. In early trading, SHFE copper fluctuated from 79,650 yuan/mt, dipped slightly to 79,540 yuan/mt, then staged a rebound to 79,690 yuan/mt before the morning session closed. The price spread between nearby contracts (BACK) continued to fluctuate between 10-40 yuan/mt, while import losses for the current-month contract stood at nearly 150 yuan/mt.
Spot copper trading in Shanghai was weaker WoW as downstream purchase willingness weakened amid rising copper prices, with significant price differences persisting between brands. The procurement sentiment for copper cathode in Shanghai was 3.2, while sales sentiment was 3.22. At market open, suppliers quoted standard-quality copper at around 180 yuan/mt premium, with transactions later concluded at 160-170 yuan/mt. In Changzhou, initial offers were near 150 yuan/mt premium, followed by deals at 120-130 yuan/mt. By the second trading session, low-priced supplies became scarce as most firms showed limited willingness to sell. Only small quantities of new cargoes from Jinchuan and Guixi arrived in Shanghai, with high-quality copper remaining scarce and premiums staying above 300 yuan/mt.
Looking ahead, Shanghai's social inventory continued to decline slightly at the start of the week, while nearby smelter shipments remained limited in the short term. Although import arrivals increased, they were insufficient to meet demand. Premiums are expected to remain firm tomorrow.
