Copper Prices Decline, Downstream Procurement and Sales Sentiment Improves, Premium Center Slightly Rises During the Day [SMM Shanghai Spot Copper]

SMM November 21:

Today, SMM's #1 copper cathode spot prices against the current month 2512 contract were quoted at a premium of 20-160 yuan/mt, with an average premium of 90 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,650 to 85,980 yuan/mt. In early trading, SHFE copper fluctuated mainly between 85,600 and 85,830 yuan/mt, with the inter-month price spread fluctuating between a contango of 40-10 yuan/mt. The import loss for the current month's SHFE copper expanded to over 800 yuan/mt.

Intraday buying and selling sentiment continued to rise. Copper prices fell again below 86,000 yuan/mt, and as it was Friday, downstream procurement sentiment increased significantly. However, due to the release of warrants in Jiangsu, spot premiums for SHFE copper still faced upward resistance. In early trading, suppliers offered standard-quality copper at a premium of 30-70 yuan/mt, which was later pressed down to 20 yuan/mt with some transactions concluded. However, the overall transaction center edged up slightly during the day.

Looking ahead to next week, warrants are expected to continue flowing out, but as the long-term contract negotiation season approaches, suppliers are expected to limit price concessions. Spot transactions for SHFE copper are expected to maintain a small premium.