Copper prices have a relatively stable bottom support, and SHFE copper spot cargo maintains a small premium transaction. [SMM Shanghai Spot Copper]

SMM October 18:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were quoted at a premium of 10-110 yuan/mt, with an average premium of 60 yuan/mt, up 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,270 to 85,990 yuan/mt. In the morning session, SHFE copper rose from 85,000 yuan/mt to 85,460 yuan/mt, and surged to 85,900 yuan/mt during the second trading session. The inter-month price spread showed a contango of 30-10 yuan/mt, while the import loss for the current-month SHFE copper contract narrowed to around 800 yuan/mt.

Intraday spot trading sentiment remained sluggish, with procurement sentiment for copper cathode in the Shanghai region at 3.05 and sales sentiment at 3.13.Concentrated arrivals of domestic and imported cargo over the weekend boosted suppliers’ willingness to sell. However, copper prices surged to nearly 86,000 yuan/mt during the morning session, dampening downstream procurement sentiment. In the early session, suppliers quoted standard-quality copper at a premium of 20-100 yuan/mt, which later fell to a premium of 10-60 yuan/mt. High-quality copper traded at a premium of around 100 yuan/mt. SX-EW copper supply was limited, with non-registered brands trading at a discount of around 100 yuan/mt.

Looking ahead, as copper prices remain high, downstream buyers are expected to continue just-in-time procurement. With ample supply from both imported and domestic sources, premiums are unlikely to rise significantly, and spot trading is expected to hover around minor premiums.