The main reason for the destocking in Shanghai during the week was that low-priced sources attracted transactions. During the day, SHFE copper premiums rose [SMM Shanghai spot copper].

SMM September 11:

Today, SMM #1 copper cathode spot prices against the current month 2509 contract were reported at premiums of 50-120 yuan/mt, with an average premium of 85 yuan/mt, up 25 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged from 80,110 to 80,240 yuan/mt. In early trading, SHFE copper fell from 80,200 yuan/mt and continued to decline, eventually fluctuating between 80,060 and 80,140 yuan/mt, closing the morning session at 80,140 yuan/mt. During the morning trading session, the inter-month price spread fluctuated around a backwardation of 10 yuan/mt, and the loss on the current month SHFE copper contract widened to 500 yuan/mt.

Intraday sales sentiment declined. After most suppliers sold at low prices earlier in the week, the availability of spot cargo decreased intraday, with Shanghai destocking 1,200 mt. The procurement sentiment for copper cathode in Shanghai was 3.13, while sales sentiment was 3.19.Intraday spot trading sentiment improved. Procurement sentiment was relatively low in previous days, with most downstream buyers only purchasing attractively priced cargo. As copper prices surged and Shanghai spot copper was partially digested, intraday premiums showed an upward trend. Mainstream standard-quality copper traded at premiums of 50-80 yuan/mt, while transactions in Jiangsu were concluded at premiums of 20-40 yuan/mt. Some low-priced cargo was quickly snapped up at the opening. Non-registered brand prices rose to a discount of 80 yuan/mt.

Looking ahead to tomorrow, Friday, downstream procurement sentiment is expected to recover. As the delivery date approaches, suppliers are unwilling to sell domestic cargo at low prices, and spot premiums are expected to stabilize tomorrow.