Copper Prices Continue to Rise, SHFE Copper Premiums Hold Firm Amid Tight Supply [SMM Shanghai Spot Copper]

SMM December 5 News:

Today, the spot prices of SMM #1 copper cathode against the current month 2512 contract were quoted at a premium of 60 yuan/mt to a premium of 280 yuan/mt, with the average price quoted at a premium of 170 yuan/mt, unchanged from the previous trading day. The SMM #1 copper cathode price ranged from 91,060 to 92,110 yuan/mt. In the morning session, the SHFE copper 2512 contract briefly touched a low of 90,610 yuan/mt before rising sharply, reaching a high of 91,920 yuan/mt during the session. The inter-month price spread was C100-C40 yuan/mt, and the import loss for the current month's SHFE copper contract narrowed to around 1,400 yuan/mt.

During the day, downstream buyers only maintained just-in-time procurement, while suppliers' willingness to sell increased slightly, with some suppliers cutting premiums after initially quoting high premiums. In the morning session, Tiefeng and Zhongtiaoshan were traded at a premium of 80 yuan/mt, and JCC-type materials were traded at a premium of 160 yuan/mt. During the day, Jinchuan (plate) arrived, alleviating some tightness in high-quality copper, with premiums initially traded at 280 yuan/mt before gradually decreasing to 230-260 yuan/mt to facilitate sales. Non-registered brands remained at a discount of over 100 yuan/mt, while registered SX-EW materials were tight with premiums around 20 yuan/mt.

Looking ahead to next week, the continuous rise in copper prices is expected to affect downstream procurement pace. Although supplies in the Shanghai area are tight, warehouse withdrawals are expected to weaken, slowing the decline in inventory. Shanghai spot copper is expected to remain at a premium, but the increase is limited.