Copper Prices Hit Another Historic High, Spot Premiums Decline Sharply [SMM Shanghai Spot Copper]

SMM December 24 News:

Today, SMM #1 copper cathode spot prices against the current month 2601 contract were quoted at a discount of 380-240 yuan/mt, with the average price quoted at a discount of 310 yuan/mt, down 95 yuan/mt from the previous trading day; the SMM #1 copper cathode price was 94,420-94,690 yuan/mt. In the morning session, the SHFE copper 2601 contract fluctuated rangebound overall between 94,800-95,230 yuan/mt, before declining to around 93,800 yuan/mt towards the end of the session. The inter-month price spread was basically between C220-C180.

Copper prices hit another record high, with SHFE copper breaking through the 95,000 yuan/mt mark at last night's opening. Buying interest in the spot market was extremely weak during the morning session, compounded by factors such as year-end payments and funding pressures. Holders offloaded large volumes of cargo in the morning, causing the premium/discount for mainstream standard-quality copper against the SHFE copper 2601 contract to fall below a discount of 300 yuan/mt, the first time it dropped to this level since late May 2024.

Due to the continued surge in copper prices, some downstream enterprises have already suspended furnace operations and production. A further decline is expected tomorrow.