Month-end combined with rising copper prices, intraday purchasing sentiment declined [SMM Shanghai spot copper]

SMM November 28:

Today, the SMM #1 copper cathode spot premiums against the current month 2512 contract were quoted at 10-210 yuan/mt, with an average premium of 110 yuan/mt, up 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 87,190 to 87,610 yuan/mt. In the morning session, SHFE copper continued to rise and stabilized above 87,000 yuan/mt, later climbing to 87,430 yuan/mt. The inter-month price spread was at a contango of 70-50 yuan/mt, and the import arbitrage loss for the current month SHFE copper contract was around 1,000 yuan/mt.

Intraday, both purchasing and sales sentiment declined. In the Shanghai region, the purchasing sentiment for copper cathode was 3.12, while sales sentiment was 3.22.. Trading sentiment weakened towards the month-end, with some suppliers reducing shipments, largely awaiting transactions in the following month. Rising copper prices coupled with the month-end led to weaker procurement demand from downstream consumers. However, intraday supply of high-quality copper remained tight, continuing to push up the premiums for SHFE copper.

Looking ahead to next week, as December begins, suppliers are expected to maintain relatively firm quotations during the long-term contract negotiations. However, if copper prices continue to rise, spot premiums for SHFE copper are expected to come under pressure.