Copper Prices Return to 80,000 yuan/mt, Shanghai Spot Copper Trading Stalemate [SMM Shanghai Spot Copper]

SMM September 22:

Today, SMM #1 copper cathode spot prices against the current month 2510 contract were quoted at parity to a premium of 120 yuan/mt, with the average premium quoted at 60 yuan/mt, down 10 yuan/mt from the previous trading day; SMM #1 copper cathode prices ranged from 80,100 to 80,350 yuan/mt. In the morning session, SHFE copper briefly surged to 80,300 yuan/mt before starting to decline, then fluctuated between 80,080 and 80,160 yuan/mt; the inter-month price spread fluctuated between 10-30 yuan/mt, and the import loss for the current month SHFE copper contract expanded again to nearly 500 yuan/mt.

Imported cargoes continued to see concentrated arrivals over the weekend, and suppliers were active in selling, leading to increased selling sentiment; copper prices climbing back above 80,000 yuan/mt dampened purchasing interest again. The purchasing sentiment for electrolytic copper in the Shanghai region was 3.11, while the selling sentiment was 3.19. In the morning session, Jinchuan (plate) supplies were tight with few offers; CCC-P and Guixi were quoted at premiums of around 100-120 yuan/mt; Xiangguang and others saw offers drop from premiums of 70 yuan/mt to premiums of 40-50 yuan/mt for transactions; JCC and Lufang traded at premiums of around 40 yuan/mt; Polish (plate) and Peruvian (plate) traded at premiums of 50 yuan/mt. Other brands such as Zhongtiaoshan PC, Tiefeng, and Jinguan were quoted at premiums of 20-30 yuan/mt, with final transactions concluded in the range of parity to premiums of 20 yuan/mt.

Looking ahead, copper prices stabilizing above 80,000 yuan/mt has somewhat weakened downstream stocking sentiment, but as imported cargoes continue to supplement supply, spot premiums are expected to struggle to rise, with overall transactions likely to hover around parity or slightly above.