DRC New Copper Beneficiation and Smelting Project Contract Signed, SHFE Copper Fell Sharply Overnight [SMM Copper Morning Meeting Minutes]

Tuesday, December 30, 2025
Futures: LME copper opened at $12,415.5/mt overnight. At the beginning of the session, it fluctuated downward, testing a low of $12,145/mt. Subsequently, the price center of copper gradually moved upward, touching a high of $12,459/mt. Then, the price center of copper moved straight down, hovering sideways near the end of the session and finally closed at $12,187/mt, with a gain of 0.45%. Trading volume reached 64,600 lots, and open interest reached 341,000 lots. The most-traded SHFE copper contract 2602 opened at 97,020 yuan/mt overnight. At the beginning of the session, it fluctuated upward, touching a high of 98,400 yuan/mt. Subsequently, the price center of copper moved downward all the way, testing a low of 96,010 yuan/mt near the end of the session, and finally closed at 96,060 yuan/mt, with a loss of 4.38%. Trading volume reached 231,900 lots, and open interest decreased by 221,000 lots, showing a reduction in positions by bulls.
[SMM Copper Morning Conference Minutes] News:
(1) On December 26, Zhejiang Kefei Technology Co., Ltd. signed an EPC contract with DRC's LEDYA Group for the SHOMBERWA 60kt/a copper mining, beneficiation, and metallurgy complex project. This project integrates mining, beneficiation, and metallurgy, processing 2 million mt of high-grade copper-cobalt sulfide ore from the DRC annually. It will be constructed in one phase to achieve an annual output of 60,000 mt of copper contained in copper concentrates. The blister copper and flue gas sulfuric acid production systems will be built in two phases, achieving an annual capacity of 30,000 mt of blister copper (98% Cu) and 90,000 mt of industrial sulfuric acid (98% H₂SO₄) respectively per phase, ultimately reaching a total capacity of 60,000 mt/year of blister copper (98% Cu) and 180,000 mt/year of industrial sulfuric acid (98% H₂SO₄). Simultaneously, expansion space is reserved for an annual 60,000 mt copper electrorefining facility and the treatment and recovery of precious metals from anode slime.
Spot:
(1) Shanghai: During the morning session on December 29, the SHFE copper 2601 contract rose to 101,900 yuan/mt. The contango between the front-month and the next contract fluctuated between 200-100 yuan/mt. The import loss for the front-month SHFE copper contract was around 1,500 yuan/mt. Looking ahead to today, approaching the year-end, trading activity from both buyers and sellers declined. Under the pressure of copper prices around 100,000 yuan/mt, downstream just-in-time procurement also decreased significantly. The situation of large discounts for Shanghai spot copper against futures is difficult to change.
(2) Guangdong: On December 29, spot #1 copper cathode in Guangdong was quoted at a discount of 260-210 yuan/mt against the front-month contract, with an average discount of 235 yuan/mt, down 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 340-320 yuan/mt, with an average discount of 330 yuan/mt, down 20 yuan/mt from the previous trading day. The average price for #1 copper cathode in Guangdong was 100,670 yuan/mt, up 2,925 yuan/mt from the previous trading day. The average price for SX-EW copper was 100,575 yuan/mt, up 2,935 yuan/mt from the previous trading day. Overall, as copper prices continued to rise significantly, downstream users remained inactive. Spot trades were very sluggish, and goods were transferred to warehouses.
(3) Imported copper: On Dec 29, warrant prices were $46-60/mt, QP January, with the average price down $2/mt from the previous trading day; B/L prices were $44-60/mt, QP January, with the average price down $2/mt from the previous trading day; EQ copper (CIF B/L) was $4-16/mt, QP January, with the average price flat from the previous trading day. Quotations referred to cargoes arriving in late December and early to mid-January.
(4) Secondary copper: At 11:30 on Dec 29, the futures closing price was 101,730 yuan/mt, up 3,620 yuan/mt from the previous trading day; the average spot premiums/discounts were -330 yuan/mt, up 10 yuan/mt from the previous trading day. Today, the price of recycled copper raw materials rose 2,400 yuan/mt WoW. The price of bare bright copper in Guangdong was 87,900-88,100 yuan/mt, up 2,400 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 5,225 yuan/mt, up 1,007 yuan/mt WoW. The price difference between copper cathode rod and secondary copper rod was 3,190 yuan/mt. According to the SMM survey, copper prices began to retreat during the afternoon session. Although suppliers of recycled copper raw materials lowered their prices, copper rod enterprises were not in a hurry to replenish stocks, instead waiting for copper prices to stabilize after the decline or to make large-scale replenishments after the New Year's Day holiday.
Prices: On the macro front, Trump's plan to replace Fed Chairman Powell, the ongoing Russia-Ukraine situation, coupled with fading sentiment in precious metals and bulls taking profits, put copper prices under pressure. On the fundamentals side, supply side, spot market supply was generally tight, with most suppliers reluctant to sell, but supply of high-quality copper increased due to concentrated arrivals, while supply of SX-EW copper and other varieties was relatively limited. Demand side, demand remained weak with copper prices staying high. Inventory side, as of Monday, Dec 29, SMM copper inventories in mainstream regions across China increased 10.95% WoW from last Thursday. Overall, copper prices were expected to continue falling today, but the decline was likely limited.
[The information provided is for reference only. This article does not constitute direct investment research or decision-making advice. Clients should make decisions cautiously and not use this to replace their own independent judgment. Any decisions made by clients are unrelated to SMM.]