Procurement sentiment continues to decline Shanghai spot copper premiums fall [SMM Shanghai spot copper]

SMM December 9 News:

Today, SMM's #1 copper cathode spot prices against the current month 2512 contract were quoted at a premium of 10 yuan/mt to a premium of 180 yuan/mt, with the average price quoted at a premium of 95 yuan/mt, down 35 from the previous trading day; SMM's #1 copper cathode prices ranged from 91,780 to 92,650 yuan/mt. In the morning session, SHFE copper briefly surged to 92,660 yuan/mt before starting to decline, with the low in the morning session touching 91,770 yuan/mt. The inter-month price spread showed a contango of 80-20 yuan/mt, and the import loss for SHFE copper's current month contract widened to around 1,200 yuan/mt.

Intraday selling sentiment increased, mainly due to some suppliers rushing to sell, leading to a decline in transaction prices; purchasing sentiment continued to decline, as high copper prices restricted downstream consumption. In the morning session, suppliers quoted premiums of around 50 yuan/mt for brands such as Zhongtiaoshan, Tiefeng, and Zijin, but transactions were hard to come by, after which premiums of 20-30 yuan/mt were widely transacted; premiums for brands like JCC, Lufang, and Xiangguang fell significantly compared to the previous day to 60-80 yuan/mt. The transaction center for SX-EW and non-registered brands also declined compared to the previous day.

Looking ahead, copper prices are expected to remain above 90,000 yuan/mt, with market procurement hindered. Spot premiums for SHFE copper are expected to have further room to decline.