Copper Prices Slightly Retreat, Spot Copper Transactions on the SHFE Improve with Rising Premiums [SMM Shanghai Spot Copper]

SMM Oct. 13:

Spot prices of SMM #1 copper cathode against the SHFE 2510 contract were quoted at a discount of 10 yuan/mt to a premium of 170 yuan/mt today, with the average premium at 80 yuan/mt, up 60 yuan/mt from the previous trading day. The SMM #1 copper cathode prices ranged from 84,800 to 85,290 yuan/mt. At the opening, SHFE copper futures briefly surged to 85,200 yuan/mt before pulling back to around 84,600 yuan/mt. The inter-month price spread nearly flattened, and import losses for the current-month SHFE copper contract stood at around 800 yuan/mt.

During the day, the center of copper prices pulled back, while spot premiums edged up slightly, and downstream buying sentiment improved modestly. The procurement sentiment for copper cathode in the Shanghai region was 2.99, and the sales sentiment was 3.09. Suppliers quoted premiums for brands such as Lufang, Poland, and Peru at around 100 yuan/mt. High-quality copper like Jinchuan (plate) was quoted at a premium of 170 yuan/mt, which was later lowered to 130 yuan/mt. Standard-quality copper such as Zhongtiaoshan and Tiefeng traded quickly at a discount of 20 yuan/mt at the opening, then rose to around a premium of 20 yuan/mt. However, as futures fluctuations remained relatively small, transactions for such supplies were mostly around parity.

Looking ahead, although copper prices pulled back slightly, they remained at relatively high levels. Spot transactions are expected to see limited improvement, and activity is likely to decrease as the delivery date approaches.