Copper Prices Rose, Downstream Buyers Drove Down Purchasing Prices, Some Supply Sources Were Tight, Premiums Rose [SMM Shanghai Spot Copper]

SMM November 26 News:

Today, SMM's #1 copper cathode spot prices against the current month 2512 contract were quoted at a discount of 10 yuan/mt to a premium of 170 yuan/mt, with the average premium quoted at 80 yuan/mt, unchanged from the previous trading day. The SMM #1 copper cathode price ranged from 86,510 to 86,800 yuan/mt. Overnight, SHFE copper rose to break through 87,000 yuan/mt before giving up gains to around 86,300 yuan/mt. In early morning trading, SHFE copper climbed to 86,500 yuan/mt, briefly touched 86,640 yuan/mt, then fell, before rising again near the morning close to settle at 86,670 yuan/mt. Import losses for the current month SHFE copper contract narrowed to around 800 yuan/mt, while the inter-month spread showed a contango of 60-30 yuan/mt.

Intraday purchasing sentiment improved slightly, as the market began trading cargoes with invoices dated next month, with some supplies transacted at a discount as buyers drove down prices. At the start of trading, suppliers offered Tiefeng, Zhongjin, and Zhongtiaoshan brands at premiums of 10-20 yuan/mt, with some transactions concluded. Later in the session, next-month invoice cargoes such as Dajiang PC and Dajiang HS were offered at a discount of 10 yuan/mt to parity, with some deals done. Due to tight supply of JCC and limited availability in the market, transaction prices remained high, above a premium of 80 yuan/mt. Lu Fang brand cargoes traded at premiums of 50-60 yuan/mt. High-quality copper supply was limited in the Shanghai market, with only Jinchuan (plate) available, and next-month invoice cargoes traded at a premium of 180 yuan/mt.

Looking ahead, copper prices are expected to shift higher to around 86,500 yuan/mt, while downstream buyers showed price-lowering sentiment, and spot premiums for SHFE copper are not expected to see significant increases.