Procurement sentiment continued to weaken, and spot premiums for SHFE copper declined [SMM Shanghai spot copper]

SMM September 17 News:

        Today, SMM #1 copper cathode spot prices against the current month 2510 contract were reported at a discount of 20 yuan/mt to a premium of 140 yuan/mt, with the average premium quoted at 60 yuan/mt, down 15 yuan/mt from the previous trading day; SMM #1 copper cathode prices ranged from 80,410 to 80,790 yuan/mt. In early trading, SHFE copper fell continuously from 80,980 yuan/mt, and after 10 a.m., it repeatedly tested 80,420 yuan/mt before rebounding to around 80,600 yuan/mt on reduced positions. The inter-month price spread was basically flat, and the import loss for the current month SHFE copper contract was nearly 500 yuan/mt.

       During the day, copper prices declined, but downstream purchasing sentiment remained weak, with market supplies largely absorbed by counteroffer purchases. The purchasing sentiment for electrolytic copper in the Shanghai region was 3.06, while the sales sentiment was 3.11. In early trading, suppliers offered premiums of 110-140 yuan/mt for CCC-P and Jinchuan brands, with a limited supply of Guixi material at a premium of 140 yuan/mt; Peruvian material was offered at a premium of 80 yuan/mt; other standard-quality copper collected for pricing was offered at premiums of 30-40 yuan/mt. Most suppliers actively lowered prices to facilitate shipments, with transactions in Shanghai and Jiangsu starting at premiums of 20-30 yuan/mt. After 10 a.m., transactions fell to near parity, with a small amount of copper traded at a discount. In the Anhui region, factory prices were at a discount of 30 yuan/mt, and transactions were moderate; downstream demand showed rigid, low-price purchasing sentiment.

       Looking ahead, the continued decline in copper prices did not prompt downstream buyers to immediately increase purchases. Downstream buyers are expected to continue driving down prices tomorrow, and Shanghai spot copper premiums may fall further.