Concentrated arrivals of imported copper suppressed the premium of SHFE copper, with no improvement expected tomorrow [SMM Shanghai spot copper]

SMM September 3 news:

        Today, SMM #1 copper cathode spot prices against the SHFE copper 2509 contract were quoted at a premium of 60-300 yuan/mt, with the average premium at 180 yuan/mt, down 10 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged between 79,950-80,430 yuan/mt. In early trading, SHFE copper prices continued to decline from around 80,210 yuan/mt, touching 79,720 yuan/mt near the morning close. The inter-month price spread stood at BACK 20-40 yuan/mt, while import losses for the SHFE copper current-month contract remained between 300-400 yuan/mt.

        Intraday purchasing sentiment remained weak, though sales sentiment improved slightly due to concentrated arrivals of imported cargoes. Purchasing sentiment for copper cathode in Shanghai was recorded at 3.11, while sales sentiment reached 3.18 (historical data available in the database). Mainstream transactions saw premiums drop from 120 yuan/mt to 80 yuan/mt during the day. In Jiangsu, premiums were pressured down from 60 yuan/mt to 20-40 yuan/mt, while unlocked bonded cargoes such as Jinfeng arriving in Shanghai traded at premiums of 20-30 yuan/mt. African and KAZ Minerals-origin cargoes saw better sales, attracting downstream purchases due to concentrated arrivals and lower prices.

        Looking ahead, copper prices around 80,000 yuan/mt may continue to suppress downstream purchases, but stockpiling demand ahead of Friday is expected to limit the downside in premiums.