Procurement and sales sentiment remained mediocre, Shanghai spot copper spot premiums declined [SMM Shanghai Spot Copper]

SMM Oct. 14:

Spot prices of SMM #1 copper cathode against the current month 2510 contract were quoted at a discount of 20 yuan/mt to a premium of 120 yuan/mt today, with the average price quoted at a premium of 50 yuan/mt, down 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,780 to 86,200 yuan/mt. In the morning session, SHFE copper briefly touched a high of 86,650 yuan/mt before starting to decline, then probed a low of 85,650 yuan/mt, and edged up to 86,070 yuan/mt near 11:30 a.m. The inter-month price spread showed a slight contango during the morning trading session, and the import loss for SHFE copper's current month contract once widened to 3,000 yuan/mt.

Intraday purchasing sentiment was weak, while sales sentiment slightly declined. The purchasing sentiment for copper cathode in the Shanghai region was 2.99, and sales sentiment was 3.07. In the morning session, suppliers quoted prices for Tiefeng and Zhongtiaoshan brands near parity, while brands such as Lufang, Xiangguang, and Peruvian large plates were quoted at a premium of 60-80 yuan/mt. After transactions were concluded at a premium of 60 yuan/mt in the market, the price center continued to trend lower. Non-registered sources were tight, quoted at a discount of around 100 yuan/mt, and SX-EW copper was at a discount of about 50 yuan/mt.

Looking ahead to tomorrow, as the SHFE copper 2510 contract reaches its last trading day, trading activity is expected to be low, but the market's quoted price center for the next month may rise. Considering the widening import loss, smelters may increase export efforts, and the premium center is expected to rise after the contract rollover.