[SMM Shanghai Spot Copper] Next week, imported and domestic supplies are expected to arrive. With the approaching delivery date, copper prices stabilized at highs, and the premium is expected to have further room to decline. However, deliverable supplies remain tight, and the discount is unlikely to widen below -50 yuan/mt.

In North China today, spot prices of #1 copper cathode against the front-month contract were at a discount of 140-100 yuan/mt, averaging a discount of 120 yuan/mt, down 30 yuan/mt from the previous trading day. Transaction prices ranged from 79,680 to 79,850 yuan/mt, with the average at 79,765 yuan/mt, down 155 yuan/mt from the previous trading day.

SMM data shows the comprehensive operating rate of copper billet producers in August 2025 was 43.87%, down 0.96 percentage points MoM and 6.69 percentage points YoY, exceeding previous expectations. By enterprise scale, large enterprises recorded 48.16%, medium-sized enterprises 39.5%, and small enterprises only 27.79%, reflecting overall weak performance as the industry remains in the adjustment phase of the traditional off-season.  

According to SMM, the comprehensive operating rate of the enamelled wire industry in August was 66.55%, down 0.7 percentage points MoM and 1.13 percentage points YoY. By enterprise size, the operating rates were 64.39% for large enterprises, 70.89% for medium-sized enterprises, and 68.94% for small enterprises.

SMM Morning Meeting Summary: Overnight, LME copper opened at $9,910/mt, fluctuated downward initially to touch a low of $9,875/mt, then the center of copper prices gradually moved upward to reach a high of $9,932.5/mt, before fluctuating downward again to close at $9,891.5/mt, down 0.83%, with trading volume at 14,000 lots and open interest at 286,000 lots. Overnight, the most-traded SHFE copper 2510 contract opened at 79,680 yuan/mt, fluctuated upward initially to touch a high of 79,880 yuan/mt, then fluctuated considerably with the center of copper prices gradually moving downward to touch a low of 79,620 yuan/mt, before finally closing at 79,650 yuan/mt, down 0.41%, with trading volume at 17,000 lots and open interest at 182,000 lots.