National Day Stockpiling Sentiment Remains Weak, Shanghai Spot Copper Premiums Continue to Hold Firm [SMM Shanghai Spot Copper]

SMM September 24:

Today, SMM #1 copper cathode spot prices against the current month 2510 contract were quoted at a discount of 10 yuan/mt to a premium of 120 yuan/mt, with the average premium at 55 yuan/mt, unchanged from the previous trading day; SMM #1 copper cathode prices ranged from 79,930 to 80,160 yuan/mt. In the morning session, SHFE copper fluctuated between 79,940 and 79,990 yuan/mt, and surged to 80,030 yuan/mt around 11 a.m.; during the morning trading hours, the inter-month price spread was basically flat, with the current month's import loss at around 450 yuan/mt.

Intraday procurement and sales sentiment were both weak, as traders' willingness to sell decreased due to industry conferences, while downstream stocking sentiment was not strong and only just-in-time procurement was observed. The procurement sentiment for copper cathode in Shanghai was 3.12, and sales sentiment was 3.13. In the morning session, suppliers quoted standard-quality copper at a premium of 10-50 yuan/mt, with weak transactions; subsequently, transactions were concluded around a premium of 20 yuan/mt in Changzhou, and the center then dropped again to near parity. Non-registered brands remained firm, with transactions concluded around a discount of 60 yuan/mt and supply tight.

Copper prices stabilized at 80,000 yuan/mt, while downstream stocking sentiment was weak. Based on the spot copper trading sentiment in Shanghai during the first half of the week, this year's National Day stockpiling was weaker compared to the same period last year. Spot transactions are expected to continue around parity tomorrow.