Intraday Copper Prices Rose with Downstream Counteroffers Evident, Shanghai Spot Copper Premiums Declined [SMM Shanghai Spot Copper]

SMM November 25 News:

Today, SMM's #1 copper cathode spot prices against the current month 2512 contract were quoted at parity to a premium of 160 yuan/mt, with an average premium of 80 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 86,330 to 86,890 yuan/mt. In the morning session, the SHFE copper 2512 contract surged sharply, reaching a high of 86,780 yuan/mt near 11:00 AM before paring some gains and closing the morning session at 86,650 yuan/mt. The inter-month spread stood at a contango of 60-40 yuan/mt, while import losses for the current month's SHFE copper widened to 1,000 yuan/mt.

Procurement sentiment during the day remained flat compared to yesterday, while sales sentiment improved slightly. Warrant destocking continued, but as futures prices rose above 86,500 yuan/mt, downstream buyers slowed their pace of accepting new orders. In the morning, suppliers offered standard-quality copper at a premium of 20-60 yuan/mt, but prices were later driven down to parity to a premium of 20 yuan/mt for transactions. Supplies of high-quality copper and SX-EW copper remained tight, with firm offers. The transaction center for non-registered brands declined during the day.

Looking ahead to tomorrow, spot market transactions are expected to remain stagnant above parity.