The arrival of imported copper supplements "coincided with" high copper prices, suppressing spot premiums for SHFE copper [SMM Shanghai Spot Copper]

SMM September 2 News:

        Today, SMM #1 copper cathode spot prices against the SHFE copper 2509 contract were quoted at premiums of 110-330 yuan/mt, with the average premium at 220 yuan/mt, down 15 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged between 80,010-80,310 yuan/mt. In early trading, the SHFE copper 2509 contract continued to surge, briefly touching 79,650 yuan/mt at the opening before rising sharply, repeatedly testing the 80,000 yuan/mt level. It closed the morning session at 79,930 yuan/mt, up 180 yuan/mt (0.22%). The inter-month spread showed contango of 10 yuan/mt to backwardation of 20 yuan/mt, with import losses for the SHFE copper near-month contract around 150 yuan/mt.

       Intraday copper prices broke through 80,000 yuan/mt, significantly weakening downstream purchasing sentiment. Meanwhile, weekend arrivals of imported and domestic cargo boosted sales sentiment. The purchasing sentiment for copper cathode in Shanghai was 3.17, while sales sentiment stood at 3.23. At market open, suppliers quoted standard-quality copper at premiums of 160-180 yuan/mt, with premiums in Jiangsu around 140 yuan/mt. As futures prices rose, premiums naturally declined. During the main trading session, standard-quality copper traded at premiums of 130-160 yuan/mt, with Jiangsu premiums near 100-120 yuan/mt. In the secondary trading session, SX-EW copper like Esox traded at 40 yuan/mt premiums, while standard-quality copper premiums continued to decline. High-quality copper remained scarce, with brands like Jintun large plates quoted at 280 yuan/mt premiums. Jinchuan was hard to find, and after Guixi cargo was purchased yesterday, spot orders were sold at premiums above 300 yuan/mt.

       Looking ahead, with copper prices remaining high and consumption unlikely to improve significantly, Shanghai spot copper premiums are expected to stay under pressure tomorrow.