Copper Prices Retreat and Procurement Sentiment Rises, Shanghai Spot Copper Discounts Narrow [SMM Shanghai Spot Copper]

SMM October 31:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 80 yuan/mt to a premium of 80 yuan/mt, with the average price quoted at parity, up 55 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 87,340 to 87,800 yuan/mt. Overnight, SHFE copper fell below 88,000 yuan/mt, briefly testing 87,000 yuan/mt. According to traders, downstream buyers were relatively active in pricing. In the early session, prices rebounded to around 87,500 yuan/mt, and after 11 a.m., they briefly surged, touching 87,800 yuan/mt. The intermonth spread narrowed significantly to within Contango 30 yuan/mt, while the import loss for the current month SHFE copper contract narrowed to below 900 yuan/mt.

Intraday procurement and sales sentiment continued to rebound, with procurement sentiment improving. However, some downstream buyers reported that premiums rose significantly compared to the previous day, and procurement volume did not increase substantially. Procurement sentiment for copper cathode in the Shanghai region was 2.93, while sales sentiment was 3.17. In the early session, suppliers quoted standard-quality copper near parity, but prices later declined. At the beginning of the session, products such as Zhongtiaoshan PC and Tiefeng traded at a discount of 70 to 60 yuan/mt, while ISA and other sources traded at a discount of 80 yuan/mt. As futures prices edged higher, most sources were pressured by downstream buyers to trade at a discount of 80 yuan/mt. However, high-quality copper was scarce during the day, with Jinchuan (plate) and Guixi trading at a premium of 80 yuan/mt or even higher. Non-registered sources were relatively tight, and prices rose noticeably compared to the first half of the week.

Looking ahead to next week, as copper prices fall and the delivery date approaches, spot premiums are expected to remain firm, with the trading center gradually moving closer to parity.