Copper prices may regain steam on supportive fundamentals and bets on further US rate cuts

[SMM Shanghai Spot Copper] Copper prices are expected to decline tomorrow. As it coincides with Friday, downstream buying interest is anticipated to persist, offering hope for a stabilization in premiums.

In North China today, spot #1 copper cathode prices against the front-month contract were at a discount of 140-100 yuan/mt, averaging a discount of 120 yuan/mt, unchanged from the previous trading day. Transaction prices ranged from 79,740 to 79,860 yuan/mt, with an average of 79,800 yuan/mt, down 620 yuan/mt from the previous trading day.

SMM Morning Meeting Minutes: LME copper opened at $9,958/mt overnight, initially fluctuated downward to a low of $9,943.5/mt, then the center of copper prices continuously moved upward to a high of $10,013/mt, fluctuated downward toward the session close and finally settled at $9,974/mt, down 1.41%, with trading volume at 28,000 lots and open interest at 293,000 lots. The most-traded SHFE copper contract 2511 opened at 79,980 yuan/mt overnight, initially rose to 80,830 yuan/mt, then fluctuated downward to a low of 79,670 yuan/mt, afterward fluctuated upward to a high level and moved sideways before finally settling at 79,880 yuan/mt, down 1.08%, with trading volume at 41,000 lots and open interest at 176,000 lots.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the continued decline in copper prices has not prompted downstream buyers to immediately increase their purchases. It is expected that downstream buyers will continue to drive down prices tomorrow, and spot premiums for SHFE copper may further decrease.

Anglo American (LON: AAL) and Chile’s state-owned copper miner Codelco have sealed a landmark deal to jointly operate their neighbouring mines in central Chile, unlocking at least $5 billion in value.

In North China today, spot #1 copper cathode prices against the front-month contract were at a discount of 140-100 yuan/mt, averaging a discount of 120 yuan/mt, up 10 yuan/mt from the previous trading day. Transaction prices ranged from 80,290 to 80,550 yuan/mt, averaging 80,420 yuan/mt, down 495 yuan/mt from the previous trading day.

Anglo American (LON: AAL) and Teck Resources’ (TSX: TECK.A, TECK.B)(NYSE: TECK) planned $53 billion merger could create the world’s largest copper mine by the early 2030s, surpassing BHP’s Escondida in Chile, according to analysts.