The price spread between futures contracts fluctuated significantly on the last trading day, and spot prices against the current-month SHFE copper contract rose. [SMM Shanghai Spot Copper]

SMM November 17:

Today, spot prices of SMM #1 copper cathode against the SHFE copper 2511 contract were at a premium of 10-200 yuan/mt, with the average price quoted at a premium of 105 yuan/mt, up 50 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 86,300 to 86,720 yuan/mt. In the morning session, the SHFE copper 2511 contract fluctuated between 86,280 and 86,600 yuan/mt, while the SHFE copper 2512 contract moved between 86,330 and 86,690 yuan/mt. During the morning trading hours, the price spread between the two contracts fluctuated between a contango of 100 and 50 yuan/mt.

Intraday, both procurement and sales sentiment declined, with procurement sentiment for copper cathode in the Shanghai region at 3.07 and sales sentiment at 3.22. During the day, most suppliers quoted prices against the next-month contract. High-quality copper prices remained high, at a premium of 80-120 yuan/mt against the next-month contract. When the contango spread was wide, suppliers of standard-quality copper offered lower prices, with sources at a discount of 50 yuan/mt being quickly traded in the market. Other sources traded at a discount of 20 yuan/mt to a premium of 40 yuan/mt.

Over the weekend, destocking occurred in the Shanghai region, mainly due to lower arrivals of imported and domestic cargo. Spot copper prices against the SHFE copper contract are expected to trade mainly around parity this week. With limited replenishment of high-quality copper sources, prices are anticipated to remain high, around 100 yuan/mt.