Shanghai Spot Copper Discounts Continue to Widen, Both Purchasing and Sales Sentiment Slightly Improve [SMM Shanghai Spot Copper]

SMM October 29 News:

Today, SMM #1 copper cathode spot prices against the current month 2511 contract were at a discount of 130 yuan/mt to a premium of 10 yuan/mt, with the average price quoted at a discount of 60 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 87,550 to 87,980 yuan/mt. In the morning session, SHFE copper fell from 88,120 yuan/mt to 87,690 yuan/mt, with the inter-month spread fluctuating between a contango of 80 yuan/mt and 40 yuan/mt, while import losses approached nearly 1,000 yuan/mt.

Intraday purchase and sales sentiment improved compared to yesterday, as widening discounts boosted purchase willingness among traders and some downstream consumers. The purchase sentiment for copper cathode in the Shanghai region was 2.86, while sales sentiment was 3.11. In the morning session, suppliers directly offered low premiums, such as Zhongtiaoshan PC at a discount of 130 yuan/mt being snapped up immediately, followed by gradual transactions of goods at a discount of 100 yuan/mt. Some cargoes were still pressured to trade at discounts of 130–100 yuan/mt. High-quality copper remained scarce during the day, with Jinchuan (plate) trading near parity. SX-EW copper supply was limited, with non-registered brands trading at discounts of around 220 yuan/mt.

Looking ahead, copper prices are expected to continue rising, with downstream purchase sentiment remaining driven by rigid demand. However, persistently widening spot discounts are prompting traders to show purchase interest, and transactions are expected to improve slightly.