Copper prices edged slightly higher, while spot copper transactions on the SHFE were noticeably subdued. [SMM Shanghai Spot Copper]

SMM October 23:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 30 yuan/mt to a premium of 50 yuan/mt, with the average price quoted at a premium of 10 yuan/mt, down 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,290 to 85,690 yuan/mt. In the morning session, the SHFE copper 2511 contract gradually declined from 85,500 yuan/mt, then surged to around 85,660 yuan/mt near 10 a.m., before slightly retreating from its gains. The inter-month price spread fluctuated between a contango of 40 yuan/mt and a contango of 20 yuan/mt. The import loss for the current month's SHFE copper expanded to around 900 yuan/mt.

During the day, both purchasing and sales sentiment weakened. As copper prices rose, suppliers became less willing to sell after being pressured to lower prices, while downstream buyers mainly sought low-priced sources. According to market feedback, orders above 85,500 yuan/mt significantly decreased. The purchasing sentiment for copper cathode in the Shanghai region was 2.98, and the sales sentiment was 3.11.Suppliers initially offered standard-quality copper at a premium of 20-50 yuan/mt, but prices were quickly driven down to around parity. As copper prices climbed, brands like Tiefeng and Zhongtiaoshan were pressured to trade at a discount of around 20 yuan/mt. High-quality copper prices were also dragged down during the day, while the price center for SX-EW copper shifted lower due to arrivals from Myanmar and BMK. Non-registered sources continued to trade at a discount of 100 yuan/mt.

Looking ahead to tomorrow, as Friday approaches, trading volume is expected to increase WoW. However, if copper prices continue to approach 86,000 yuan/mt, spot premiums for SHFE copper may remain suppressed.