Copper Prices Fell, Procurement Sentiment Rose, SHFE Copper Premiums Increased [SMM Shanghai Spot Copper]

SMM September 18:

Today, SMM #1 copper cathode spot prices against the current month 2510 contract were quoted at parity to a premium of 140 yuan/mt, with the average premium at 70 yuan/mt, up 0 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged from 79,880 to 80,100 yuan/mt. In the morning session, the SHFE copper 2510 contract continued to rise from a low of 79,740 yuan/mt, and during the concentrated trading period, the futures briefly touched the 80,000 yuan/mt mark again but "faded quickly," indicating a lack of market confidence in copper prices above 80,000 yuan/mt. The inter-month price spread showed a backwardation of 10-30 yuan/mt.

Intraday procurement and sales sentiment both increased, with procurement sentiment in the Shanghai region at 3.15 and sales sentiment at 3.17. The rise in sales sentiment and premiums was mainly due to most bears profiting from the decline in copper prices, leading to increased shipments. In the morning, suppliers offered premiums of 40-80 yuan/mt for Peruvian and other brands, with transactions concluded at 30-60 yuan/mt. In the Changzhou region, after parity transactions, the price center rose to 10-20 yuan/mt. Non-registered spot cargo intraday prices rose to around a discount of 80 yuan/mt.

Looking ahead, copper prices fell, and coinciding with Friday, downstream buying interest is expected to continue, with hopes for premiums to stabilize.