As year-end long-term contracts approach their conclusion, suppliers' preemptive selling has led to a notable decline in Shanghai spot copper premiums. [SMM Shanghai Spot Copper]

SMM December 10 news:

Today, SMM's #1 copper cathode spot prices against the current SHFE copper 2512 contract were quoted at a discount of 40 yuan/mt to a premium of 100 yuan/mt, with the average price quoted at a premium of 30 yuan/mt, down 65 yuan/mt from the previous trading day; the SMM #1 copper cathode price was 91,510-91,890 yuan/mt. In the morning session, SHFE copper rose from 91,200 yuan/mt to above 91,700 yuan/mt, with the inter-month price spread showing C80-C40 yuan/mt, and the import loss for the current SHFE copper contract narrowed to around 1,000 yuan/mt.

Intraday sales sentiment significantly improved, mainly due to the approaching contract rollover and delivery of the SHFE copper 2512 contract, which is the last contract of 2025. Considering the termination of long-term contracts and annual settlements, most enterprises ended trading early and began front-running, causing Shanghai spot copper premiums to plummet. In the morning session, suppliers quoted standard-quality copper at parity to a premium of 40 yuan/mt, high-quality copper such as Jinchuan (plate) at a premium of 100 yuan/mt, and SX-EW copper at a discount of around 30 yuan/mt. Subsequently, during the first trading session, led by front-running suppliers, Shanghai spot copper premiums fell sharply, and downstream buyers took the opportunity to bargain down purchasing prices. During the mainstream trading session, most supplies were quoted at a discount, but smelters indicated that ample low-priced supplies were not readily available, so the discount stopped near 40 yuan/mt.

Looking ahead to tomorrow, as spot prices against the SHFE copper 2512 contract become less active, Shanghai spot copper premiums are expected to remain under pressure, with small discounts likely to persist tomorrow.