Copper Prices Surged, Downstream Procurement Sentiment Weakened, Shanghai Spot Copper Discounts Widened [SMM Shanghai Spot Copper]

SMM October 27 News:

Today, spot prices of SMM #1 copper cathode against the SHFE 2511 contract ranged from a discount of 100 yuan/mt to a premium of 10 yuan/mt, with the average price quoted at a discount of 55 yuan/mt, down 55 yuan/mt from the previous trading day; SMM #1 copper cathode prices were between 88,020 and 88,410 yuan/mt. In early trading, SHFE copper surged to around 88,500 yuan/mt before slightly retreating to around 88,200 yuan/mt, then continued to rise, touching 88,400 yuan/mt and closing at 88,360 yuan/mt. The inter-month price spread fluctuated between a contango of 90 yuan/mt and a backwardation of 50 yuan/mt, while import losses for the current-month SHFE copper contract remained around 1,000 yuan/mt.

In the Shanghai region, the procurement sentiment for copper cathode was 2.79, and the sales sentiment was 3.06.During the first trading session in the morning, transactions for standard-quality copper started at a discount of 20 yuan/mt but were gradually pushed down to a discount of 100 yuan/mt (for cargoes with invoices dated next month). According to SMM's market communication, downstream buyers primarily focused on cargo pick-up under long-term contracts during the day; those without long-term contracts made just-in-time procurement and purchased low-priced non-registered sources. Transactions in the first morning session mainly occurred among traders, with evident price-cutting sentiment. Subsequently, trading gradually declined, with transactions mostly settling at a discount of 100 yuan/mt, and the second trading session performed weaker than the first.

Looking ahead to tomorrow, with copper prices holding at 88,000 yuan/mt, downstream procurement sentiment is expected to decrease significantly, and suppliers are anticipated to further lower prices to facilitate sales.