Copper Prices Remain High with Rising Premiums Due to Tight Spot Copper Supply in Shanghai [SMM Shanghai Spot Copper]

SMM December 3:

Today, spot premiums for SMM #1 copper cathode against the current month 2512 contract were quoted at 40-240 yuan/mt, with the average premium at 140 yuan/mt, up 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 88,730 to 89,230 yuan/mt. In the morning session, SHFE copper fluctuated mainly between 88,700 and 89,000 yuan/mt, and surged to 89,150 yuan/mt after 11 a.m. The inter-month price spread showed a contango of 80-40 yuan/mt, while import losses for the current month SHFE copper contract were nearly 1,500 yuan/mt.

Intraday, both purchasing and sales sentiment improved, but spot copper supply in Shanghai remained relatively tight, and spot premiums for SHFE copper continued to rise amid high copper prices. In the early session, a small number of suppliers offered cargo at a premium of 20 yuan/mt, which were quickly snapped up, and transactions were soon concluded at premiums of 40-60 yuan/mt. During the mainstream trading period, most cargo was traded at premiums of 80-130 yuan/mt. In Changzhou, downstream buyers showed some price resistance, but transactions were mostly concluded around a premium of 60 yuan/mt. Supply of high-quality copper remained tight, with Jintuan plate also rising to a premium of 200 yuan/mt, while Jinchuan plate was in tight supply with offers as high as 280-300 yuan/mt.

Looking ahead, premiums are expected to remain firm tomorrow, with attention on actual downstream transactions.