Copper Prices Hit Record High, Tight Supply of SHFE Copper Spot Cargo Drives Up Premiums [SMM Shanghai Spot Copper]

SMM December 4 news:

Today, SMM's #1 copper cathode spot premiums against the current month 2512 contract were quoted at 60-280 yuan/mt, with the average premium at 170 yuan/mt, up 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 90,960 to 91,530 yuan/mt. In the morning session, SHFE copper continued to rise to 91,360 yuan/mt before briefly giving up gains, and climbed back above 91,300 yuan/mt near the close of the morning session. The inter-month price spread fluctuated between Contango 80 and Contango 20 yuan/mt, while the import loss for the current month's SHFE copper expanded to over 1,700 yuan/mt.

Intraday procurement and sales sentiment both weakened, with purchasing sentiment declining significantly. Copper prices hitting a record high forced most downstream users to maintain just-in-time procurement. However, spot market supply remained tight, keeping premiums firm. In the morning session, suppliers' offers for Tiefeng at premiums of 40-50 yuan/mt were snapped up instantly, and Zhongtiaoshan and similar brands at premiums of 50 yuan/mt were also quickly traded. During the mainstream trading period, suppliers raised their offers to premiums above 60 yuan/mt, while JCC-branded materials were hard to find at high prices, with premiums rising to 180 yuan/mt. Jinchuan and other brands were in short supply, and offers for high-quality copper continued to climb.

Looking ahead, as copper prices break through historical highs and Shanghai spot copper premiums remain firm, they are expected to stay firm tomorrow if there is no significant supply replenishment.