Copper prices slightly stabilized, downstream purchasing sentiment improved, and Shanghai spot copper discounts narrowed [SMM Shanghai Spot Copper]

SMM November 7 News:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 20 yuan/mt to a premium of 100 yuan/mt, with the average price quoted at a premium of 40 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,890 to 86,140 yuan/mt. In the morning session, SHFE copper rose from 85,900 yuan/mt to 86,040 yuan/mt, then gave up gains to around 85,750 yuan/mt. The inter-month price spread fluctuated between a contango of 20 yuan/mt and a backwardation of 10 yuan/mt, while the import loss for the current month SHFE copper contract narrowed to around 700 yuan/mt.

Intraday, both purchasing and sales sentiment improved. Imported and domestic supplies were relatively concentrated, and downstream purchasing sentiment improved compared to the first half of the week. In the morning, suppliers offered standard-quality copper at around a discount of 30 yuan/mt, which was quickly sold out, followed by price adjustments to a discount of 20 yuan/mt to a premium of 50 yuan/mt. Some tight circulating supplies, such as JCC, were quoted at a premium of up to 60 yuan/mt. The bill market showed good opportunities today, with some traders having purchase demand. High-quality copper was traded at a premium of 80-100 yuan/mt, with overall supply remaining relatively tight. The trading center for non-registered and SX-EW copper prices moved higher.

Looking ahead to next week, as the delivery date approaches, the discount is expected to narrow further. Currently, copper prices are fluctuating around 86,000 yuan/mt. Downstream users are expected to restock after receiving previous orders, and trading is expected to continue improving next week.