Buyer's Market Sees Thin Trading, Spot Premiums Continue to Decline [SMM Shanghai Spot Copper]

SMM December 23 News:

Today, SMM #1 copper cathode spot prices against the current SHFE 2601 contract were quoted at a discount of 260-170 yuan/mt, with the average discount at 215 yuan/mt, down 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 93,340-93,600 yuan/mt. In the morning session, the SHFE copper 2601 contract fluctuated rangebound between 93,610-93,800 yuan/mt, edging up to 93,800 yuan/mt by the end of the session. The intermonth spread was basically between contango 220-180.

Intraday spot premiums trended lower with low offers, as the market completely shifted to a buyer's market. In the morning, suppliers quoted standard-quality copper at around a discount of 220 yuan/mt against the next-month contract, and high-quality copper at around a discount of 170 yuan/mt. Subsequently, during the second trading session, prices quickly fell to a discount of 260 yuan/mt, while high-quality copper remained relatively stable, quoted at around a discount of 180 yuan/mt. SX-EW copper supply was tight and prices were high, with no significant decrease WoW.

Tomorrow, buyer counteroffers are expected to remain low, trading activity is limited, and spot premiums are expected to continue declining.