Copper Prices Surged on the First Trading Day After the Holiday, Spot Trades Sluggish [SMM Shanghai Spot Copper]

SMM Oct. 09:

Today, spot prices of SMM #1 copper cathode against the front-month 2510 contract were quoted at a discount of 70 yuan/mt to a premium of 100 yuan/mt, with the average price quoted at a premium of 15 yuan/mt, up 15 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,400 to 86,080 yuan/mt. In early trading, SHFE copper prices continued to widen from 84,800 yuan/mt to 85,980 yuan/mt, briefly pulled back, and then continued to surge, rising by more than 3,000 yuan/mt from the previous trading day. The intermonth price spread showed a Contango structure, trading between a Contango of 60 yuan/mt and 20 yuan/mt in the morning. The import loss for the front-month SHFE copper contract widened to over 1,000 yuan/mt.

In early trading, suppliers quoted high prices for standard-quality copper, but there were no inquiries, and prices were quickly lowered. Buying and selling sentiment diverged during the day, with purchasing sentiment for copper cathode in Shanghai at 2.87 and selling sentiment at 3.07.As copper prices surged, downstream buying sentiment declined. Spot prices of SHFE copper against the front-month contract were quoted at parity to a premium of 100 yuan/mt, but only some high-quality copper transactions were concluded. Subsequently, transactions in Jiangsu fell to around a discount of 60 yuan/mt, while prices in Shanghai for brands such as Tiefeng and Zhongtiaoshan were adjusted to around a discount of 70 yuan/mt. After transactions, there were no low-priced sources available.

During the holiday, Shanghai did not see an inventory buildup, as some imported cargoes had not yet arrived and domestic cargoes were still in transit. Inventory is expected to increase over the weekend. Approaching the delivery date and with a Contango structure, spot discounts for SHFE copper are expected to be limited.