On the last trading day, spot copper transactions on the SHFE were sluggish, and it is expected that the discount quotation will persist tomorrow. [SMM Shanghai Spot Copper]

SMM December 15:

Today, SMM's #1 copper cathode spot prices against the front-month 2512 contract were quoted at a discount of 30 yuan/mt to a premium of 150 yuan/mt, with the average price quoted at a premium of 60 yuan/mt, up 80 yuan/mt from the previous trading day; the SMM #1 copper cathode price ranged from 92,070 to 92,460 yuan/mt. As today was the last trading day for the SHFE copper 2512 contract, according to SMM's #1 copper cathode price assessment methodology, SMM consistently quoted against the front-month contract. In the morning session, the SHFE copper 2512 contract mainly traded between 92,090 and 92,330 yuan/mt, while the SHFE copper 2601 contract traded between 92,200 and 92,510 yuan/mt; the inter-month price spread was basically between contango 200 and contango 100.

Market sentiment for both procurement and sales was relatively mediocre during the day, primarily due to the last trading day coinciding with the near completion of 2025 long-term contracts, leading to a decline in trade activity. Copper prices fell by nearly 1,000 yuan/mt during the day but remained above 92,000 yuan/mt in absolute terms, resulting in weak downstream purchasing. In the morning, suppliers quoted standard-quality copper at around a discount of 100 yuan/mt against the next-month contract, and high-quality copper at around a discount of 50 yuan/mt; later, during the second session, prices fell to discounts of 130 yuan/mt and 80 yuan/mt, respectively.

Looking ahead to tomorrow, with Shanghai inventory showing only a slight increase, indicating limited supply from both domestic and imported sources, spot prices against the SHFE copper 2601 contract are expected to start from a discount.