Copper Prices Rose While Purchasing and Sales Sentiment Weakened, Unreleased Warrants Kept Premiums Firm [SMM Shanghai Spot Copper]

SMM September 15:

        Today, SMM #1 copper cathode spot prices against the current month 2510 contract were reported at a premium of 10 yuan/mt to a premium of 140 yuan/mt, with the average premium at 75 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 80,880 to 81,360 yuan/mt. In the morning session, the SHFE copper 2510 contract continued to decline from 81,380 yuan/mt, falling to around 80,700 yuan/mt near 11:00 am. The inter-month spread was almost flat, and the import loss for the current month SHFE copper contract was around 500 yuan/mt.

        Intraday trading shifted to the SHFE copper 2510 contract. Copper prices above 81,000 yuan/mt dampened downstream buying interest, but when futures fell below 81,000 yuan/mt during the morning session, downstream point pricing sentiment improved slightly. The procurement sentiment for electrolytic copper in the Shanghai region was 3.09, while the sales sentiment was 3.11. In the morning session, supplies of Xiangguang, Lufang, and JCC were scarce, with transactions at a premium of 90-100 yuan/mt. Jinchuan traded at a premium of around 140 yuan/mt, while CCC-P traded at a premium of 100-130 yuan/mt. Supplies from Changzhou and Shanghai, such as Zijin, Zhongjin Zhongyuan, Zhongtiaoshan PC, and Tiefeng, were consolidated to mainstream Shanghai warehouses, with transaction prices at a premium of 10-50 yuan/mt. SX-EW copper traded at a discount of around 40 yuan/mt, and non-registered brands traded at a discount of around 100 yuan/mt.

        Looking ahead, copper prices are expected to experience a slight correction but remain high at around 80,000 yuan/mt. Downstream buying interest is weak, but warrants have not been released in large quantities. Shanghai spot copper is expected to remain stagnant above the parity line.