Copper prices returned to the 85,000 yuan/mt level, with downstream short-term concentrated restocking and improved transaction activity [SMM Shanghai spot copper]

SMM November 5 News:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 40 yuan/mt to a premium of 90 yuan/mt, with the average premium reported at 25 yuan/mt, up 25 yuan/mt from the previous trading day; SMM #1 copper cathode prices ranged from 85,190 yuan/mt to 85,480 yuan/mt. In the morning session, SHFE copper opened lower and moved higher, rising from 85,220 yuan/mt to 85,620 yuan/mt, with the inter-month price spread fluctuating between a contango of 30 yuan/mt and a backwardation of 10 yuan/mt. The import loss for the current month SHFE copper contract narrowed to around 600 yuan/mt.

Yesterday, copper prices fell sharply, and downstream buying interest recovered noticeably. The procurement sentiment for copper cathode in the Shanghai region was 3.02, while the sales sentiment was 3.19.In the morning session, suppliers quoted standard-quality copper at a discount of 30 yuan/mt to 20 yuan/mt, with limited transactions. As the session progressed into the second trading period, transactions gradually declined, with concentrated deals reported at a discount of 50 yuan/mt to 40 yuan/mt. High-quality copper resources remained firm in pricing, but trading liquidity was relatively weak. The price spread between high-quality and standard-quality copper continued to narrow. Non-registered sources saw substantial transactions during the day.

Looking ahead to tomorrow, downstream demand recovered briefly after the sharp decline in copper prices, but most participants maintained a wait-and-see sentiment. After short-term restocking, transactions are expected to see limited significant growth, and premiums are projected to stabilize.