Approaching the holiday, downstream stocking pace was relatively slow, and spot transactions remained stagnant near parity [SMM Shanghai Spot Copper]

SMM September 23:

Today, SMM #1 copper cathode spot prices against the current month 2510 contract were reported at a discount of 10 yuan/mt to a premium of 120 yuan/mt, with the average premium at 55 yuan/mt, down 5 yuan/mt from the previous trading day. SMM #1 copper cathode prices ranged from 79,860 to 80,160 yuan/mt. In early trading, SHFE copper briefly surged to 80,160 yuan/mt before starting to decline, falling to 79,860 yuan/mt by the end of the first session, then fluctuating between 79,920 and 79,960 yuan/mt, and closing at 79,940 yuan/mt. The inter-month price spread ranged from BACK 10 to BACK 30 yuan/mt. The import profit margin for the current month's SHFE copper contract widened to a loss of 500 yuan/mt.

Intraday selling sentiment weakened slightly, while buying sentiment edged up. Procurement sentiment for electrolytic copper in the Shanghai region was 3.12, and sales sentiment was 3.15. In early trading, offers for Polish, Peruvian, and Xiangguang brands remained high, with premiums of 60-80 yuan/mt finding few takers, later declining to premiums of 40-60 yuan/mt. Standard-quality copper from domestic sources traded at a discount of 10 yuan/mt to a premium of 30 yuan/mt in Changzhou and Shanghai, while ex-factory prices in Anhui were at a discount of 30 yuan/mt. Transaction prices for non-registered brands in Shanghai continued to rise in recent days, trading at a discount of around 60 yuan/mt intraday.

Looking ahead, copper prices are expected to continue fluctuating around 80,000 yuan/mt. Downstream stockpiling for the National Day holiday is progressing slowly, and spot premiums are anticipated to remain around parity.