SMM December 26 News:
Today, SMM #1 copper cathode spot prices against the current SHFE 2601 contract were quoted at a discount of 400 yuan/mt to a discount of 280 yuan/mt, with the average price quoted at a discount of 340 yuan/mt, down 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 97,300-98,160 yuan/mt. In early trading, the SHFE copper 2601 contract hit a new record high again at the opening and rose to around 98,500 yuan/mt before the morning close. The intermonth spread was basically between C220 and C180.
Intraday downstream demand was sluggish, but market supplier shipments were also low, so intraday prices generally remained stable. In the morning session, suppliers quoted mainstream standard-quality copper at a discount of 360 yuan/mt to a discount of 300 yuan/mt, while high-quality copper was scarce and offers were hard to find. After the second session, standard-quality copper gradually fell to around a discount of 400 yuan/mt.
Looking ahead to next week, copper prices repeatedly hitting new highs has led to large-scale shutdowns and production halts among downstream users. Consumption is expected to remain sluggish ahead of the New Year holiday. Under the weak supply-demand situation, spot premiums are more likely to fall than rise.
