[SMM Analysis:Turning point emerges in the smelting acid market; sulfuric acid revenue may struggle to support high-load copper smelting.] The decline in acid prices has a more profound impact on the copper smelting industry. This year, despite three major pressures—a sharp drop in TC for copper concentrate, high raw material costs, prolonged unfavorable domestic-to-international price ratios, and increased capital occupation costs for raw material procurement—copper smelters consistently increased electrolytic copper production from January to August. This was largely supported by sulfuric acid revenue, as producing one ton of electrolytic copper simultaneously yields 3-4 tons of smelting acid. The revenue from sulfuric acid essentially offset the negative effects of the TC plunge. However, it is foreseeable that smelting acid prices in the fourth quarter may struggle to strongly support copper smelters' production activities. Smelters will face multiple challenges: spot TC remaining persistently between -$40 to -$50, high raw material costs, declining revenue from by-product sulfuric acid, expected reduced production of waste-derived electrolytic copper due to Policy Document 770, and maintenance activities at 10 smelters. These factors are likely to collectively lead to a deterioration in copper smelters' operating rates.

[SMM Shanghai Spot Copper] Looking ahead to next week, copper prices returning to around 80,000 yuan/mt again has weakened market purchasing sentiment. However, with the National Day holiday approaching, downstream stockpiling activities will keep the premiums firm, and transactions are expected to remain stable above parity.

This week, the machine operating rate continued to rebound to...

In North China today, spot prices of #1 copper cathode against the front-month contract were at a discount of 60-100 yuan/mt, with an average discount of 80 yuan/mt, up 40 yuan/mt from the previous trading day. Transaction prices ranged from 79,800 to 79,880 yuan/mt, with an average of 79,840 yuan/mt, up 40 yuan/mt from the previous trading day.

SMM Morning Meeting Minutes: LME copper opened at $9,954.5/mt overnight, fluctuated upward initially to touch a high of $9,973/mt, then fluctuated downward to touch a low of $9,917/mt, before rising unilaterally and finally closing at $9,946/mt, down 0.28%, with trading volume reaching 15,000 lots and open interest reaching 290,000 lots. The most-traded SHFE copper contract 2511 opened at 79,680 yuan/mt overnight, touched a high of 79,810 yuan/mt initially, then fluctuated downward to touch a low of 79,530 yuan/mt, before fluctuating considerably and finally closing at 79,660 yuan/mt, down 0.15%, with trading volume reaching 18,000 lots and open interest reaching 173,000 lots.