SMM December 1:
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 220 yuan/mt, with the average price quoted at a premium of 105 yuan/mt, down 5 yuan/mt from the previous trading day; SMM's #1 copper cathode prices were 88,890-89,660 yuan/mt. In early trading, the SHFE copper 2512 contract initially surged to 89,500 yuan/mt, then began to give back gains, but remained basically stable above 89,000 yuan/mt during the morning session. The SHFE copper intermonth spread currently stands at Contango 80-Contango 40 yuan/mt, while the import loss for the current month's SHFE copper expanded to over 1,200 yuan/mt.
Intraday purchasing sentiment declined significantly; faced with prices above 89,000 yuan/mt, downstream new orders showed limited increase. At the beginning of the month, coupled with high copper prices, suppliers' willingness to sell also decreased. In early trading, suppliers quoted standard-quality copper at parity to a premium of 60 yuan/mt, with some transactions concluded; a small amount of material at a discount of 20 yuan/mt was quickly traded, after which counteroffers became evident, and some material was pressured to trade at a discount of 10 yuan/mt. High-quality copper supply remained scarce, with Jintun large plate Anhui ex-works prices reaching premiums above 180 yuan/mt; high-quality copper prices are expected to remain difficult to decline this week.
Looking ahead to tomorrow, spot market trading sentiment will depend on whether futures pull back. If prices remain above 89,000 yuan/mt, new order growth is expected to be significantly limited, and downstream purchasing sentiment is likely to stay low.
