Copper Prices Continue to Decline, Spot Copper Trading Sentiment Gradually Improves on the SHFE [SMM Shanghai Spot Copper]

SMM November 4 News:

Today, SMM #1 copper cathode spot prices against the current month 2511 contract ranged from a discount of 70 yuan/mt to a premium of 70 yuan/mt, with the average price quoted at parity, up 5 yuan/mt from the previous trading day. SMM #1 copper cathode prices were between 86,290 and 86,890 yuan/mt. In the morning session, SHFE copper fell from 86,800 yuan/mt to 86,400 yuan/mt, with the price spread between futures contracts fluctuating between a contango of 20 yuan/mt and a backwardation of 20 yuan/mt. The import loss for the current month SHFE copper contract narrowed to around 800 yuan/mt.

Intraday, copper prices continued to decline, but downstream buyers remained cautious about further downside room, leading to conservative purchasing. In the Shanghai region, purchasing sentiment for copper cathode was 3, while sales sentiment was 3.2.. In the morning session, suppliers quoted standard-quality copper at a discount of 70 to 20 yuan/mt, which was quickly traded, but transactions became stagnant during the second trading period. High-quality copper supply remained tight, but it was reported that replenishments would arrive later in the week, and the price spread against standard-quality copper is expected to narrow. Non-registered spot cargo continued to face bargain-down purchasing prices intraday, but trading volume increased MoM.

Looking ahead to tomorrow, as copper prices fall below 86,000 yuan/mt, downstream purchasing sentiment is expected to improve, although bearish psychology persists. Additionally, as the contango spread gradually narrows, suppliers may offer premiums at a discount to promote transactions.