Weak Consumption and Limited Demand Keep Spot Premiums on a Downward Trend [SMM Shanghai Spot Copper]

SMM December 17 news:

Today, the spot premium for SMM #1 copper cathode against the current month 2512 contract was quoted at a discount of 200 yuan/mt to a discount of 100 yuan/mt, with the average premium quoted at 150 yuan/mt, down 25 yuan/mt from the previous trading day; the SMM #1 copper cathode price was 92,000-92,290 yuan/mt. In the early session, the SHFE copper 2601 contract fluctuated narrowly between 92,200-92,400 yuan/mt, with the inter-month spread basically between C120-C90.

During the day, sellers remained active in offloading goods, however, downstream demand was weak, and spot premiums declined throughout the early session, with only a small amount of low-priced cargo transacted, indicating overall soft demand. In the early session, suppliers quoted standard-quality copper at around a discount of 170 yuan/mt against the next month contract, and high-quality copper at around a discount of 100 yuan/mt; subsequently, during the second session, prices fell to a discount of 200 yuan/mt for standard-quality copper and a discount of 110 yuan/mt for high-quality copper.

Looking ahead to tomorrow, the weak year-end consumption situation is difficult to change, and premiums are expected to decline slightly tomorrow.