Suppliers continued to offload goods at low prices, and market transactions remained sluggish compared to yesterday [SMM Shanghai spot copper]

SMM December 19:

Today, spot prices of SMM #1 copper cathode against the current SHFE 2601 contract were quoted at a discount of 220-100 yuan/mt, with the average discount at 160 yuan/mt, down 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged between 92,130-92,570 yuan/mt. In the morning session, the SHFE copper 2601 contract fluctuated rangebound between 92,350-92,670 yuan/mt, with the inter-month spread basically between contango 150-100.

Intraday, suppliers' offers declined as expected compared to yesterday, while downstream demand also remained sluggish. In the morning, suppliers quoted standard-quality copper at around a discount of 160 yuan/mt against the next-month contract, and high-quality copper at around a discount of 100 yuan/mt; subsequently, during the second trading session, standard-quality copper quickly fell to a discount of 200 yuan/mt, while high-quality copper remained firm, quoted at around a discount of 100 yuan/mt.

Looking ahead to next week, the overall market structure is not expected to change significantly before year-end settlements. As downstream users in the north gradually enter the off-season, inventory buildup pressure in Shanghai is expected to continue increasing, and premiums are anticipated to remain low.