Both imported and domestic cargoes arrived, and the sales sentiment for Shanghai spot copper rose. [SMM Shanghai Spot Copper]

SMM September 5 news:

Today, SMM #1 copper cathode spot prices against the SHFE copper 2509 contract were at a premium of 50-280 yuan/mt, with the average premium at 165 yuan/mt, down 15 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged between 79,870-80,230 yuan/mt. In early trading, SHFE copper rebounded from 79,750 yuan/mt, recovering the night session's losses, and repeatedly tested 79,860 yuan/mt before breaking the 80,000 yuan/mt level near the morning close, reaching 80,100 yuan/mt. The inter-month spread fluctuated between BACK10-BACK30 yuan/mt, while import losses for the SHFE copper near-month contract narrowed to below 300 yuan/mt.

Although copper prices did not decline during the day, some downstream buyers made purchases on Friday, slightly boosting sentiment. Continued import arrivals prompted suppliers to actively offload cargoes, further lifting sales sentiment. Purchasing sentiment for copper cathodes in Shanghai was at 3.13, while sales sentiment stood at 3.20. Suppliers initially quoted higher premiums, but downstream buyers showed strong desire to bargain down prices. JCC transactions settled around a premium of 70 yuan/mt, while Zijin and Japan and South Korea cargoes traded at premiums of 20-40 yuan/mt. In Changzhou, deals were concluded near a premium of 20 yuan/mt. However, as futures rose, some suppliers lowered premiums to downstream buyers, with a few securing cargoes at near-parity levels. SX-EW copper remained tight during the day, trading at a discount of around 10 yuan/mt, with limited cargoes at discounts of 30-20 yuan/mt. Non-registered brands were abundant, mostly transacting at discounts near 100 yuan/mt.

Looking ahead to next week, both imported and domestic cargoes are expected to arrive. With copper prices stabilizing at highs ahead of delivery, premiums may face further downward pressure. However, deliverable supplies remain tight, limiting the potential for discounts to widen beyond 50 yuan/mt.