Copper Prices Continue to Rise, Shanghai Spot Copper Spot Premiums Fall Under Pressure [SMM Shanghai Spot Copper]

SMM December 8 News:

Today, the spot premium for SMM #1 copper cathode against the current month 2512 contract was quoted at 20-240 yuan/mt, with the average premium at 130 yuan/mt, down 40 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 92,040 to 92,560 yuan/mt. In the morning session, the SHFE copper 2512 contract retreated after a rapid rise and continued to climb to 92,480 yuan/mt by the close. The inter-month spread was in contango of 100-50 yuan/mt, while import losses for the current month SHFE copper contract stood at 1,400 yuan/mt.

Intraday purchasing sentiment declined significantly, while sales sentiment improved slightly, leading to a drop in Shanghai spot copper premiums. In the morning, suppliers offered standard-quality copper at a premium of 50-120 yuan/mt. After concentrated transactions at 50-60 yuan/mt, premiums were driven down to around 30 yuan/mt, though available supply was limited. High-quality copper, such as Jinchuan (plate), arrived today, but due to reduced demand and active selling by suppliers, premiums fell to around 180 yuan/mt. Trading for SX-EW copper and non-registered brands remained weak.

Looking ahead to tomorrow, spot transactions are expected to remain above parity. However, as copper prices continue to rise, downstream order volumes have weakened, and premiums are expected to face pressure.