Spot Premiums Continue to Decline, Market Transactions Remain Sluggish and Quiet [SMM Shanghai Spot Copper]

SMM December 22:

Today, SMM's #1 copper cathode spot prices against the current month 2601 contract were quoted at a discount of 240-150 yuan/mt, with the average discount at 195 yuan/mt, down 35 yuan/mt from the previous trading day. The SMM #1 copper cathode price range was 93,340-94,010 yuan/mt. In the morning, the SHFE copper 2601 contract fluctuated rangebound between 93,520-93,870 yuan/mt in the first session, then rose slightly to around 94,080 yuan/mt in the second session. The intermonth price spread was basically between C230-C180.

Intraday, suppliers' offers continued to decline compared to last Friday, while downstream purchase willingness was weak. In the morning session, suppliers quoted standard-quality copper at around a discount of 200 yuan/mt against the next-month contract, and high-quality copper at around a discount of 150 yuan/mt; subsequently, in the second session, prices quickly fell to a discount of 240 yuan/mt for standard-quality copper, while high-quality copper remained relatively stable at around a discount of 160 yuan/mt. SX-EW copper supply was tight and prices were high, with no significant decrease compared to last week.

Spot premiums are expected to recover tomorrow; however, if the SHFE copper contango structure continues to widen, spot premiums may still decline.