Copper Prices Edged Up, Downstream Procurement Sentiment Weakened, Shanghai Spot Copper Premiums and Discounts Stabilized Approaching Delivery [SMM Shanghai Spot Copper]

SMM News on November 13:

Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 30 yuan/mt to a premium of 130 yuan/mt, with the average price quoted at a premium of 50 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 87,040 to 87,380 yuan/mt. In early trading, SHFE copper fell to 86,930 yuan/mt, then began to fluctuate upward, reaching 87,300 yuan/mt during the morning session. The contango structure widened significantly to 60-80 yuan/mt during the morning session, and the import loss for the current month's SHFE copper contract exceeded 900 yuan/mt.

Procurement sentiment weakened during the day. According to SMM's market communication, downstream buyers were highly sensitive to prices, and procurement sentiment began to weaken after copper prices rose above 87,000 yuan/mt. The procurement sentiment for copper cathode in Shanghai was 3.04, while sales sentiment was 3.23. In early trading, suppliers quoted standard-quality copper at a discount of 20 yuan/mt to a premium of 30 yuan/mt. However, as futures prices rose, downstream procurement sentiment weakened, and transactions were concluded at a discount of 30 yuan/mt as buyers drove down prices. Non-registered copper prices remained low, at a discount of 200 yuan/mt, and warehouse withdrawals were poor, mainly due to the widening price difference between copper cathode and copper scrap, which led to relatively ample supply of scrap copper, affecting transactions of such supplies.

Looking ahead to tomorrow, copper prices are expected to return to 87,500 yuan/mt, and downstream procurement is expected to remain weak. However, with the approach of delivery, spot discounts for SHFE copper are unlikely to widen significantly, and transactions are expected to remain around parity.