Trading was thin on the last trading day of the year-end, as suppliers held back on sales for the holidays, leading to a narrowing of spot discounts. [SMM Shanghai spot copper]

SMM December 31:

Today, SMM's #1 copper cathode spot prices against the current month 2601 contract were quoted at a discount of 250 yuan/mt to a premium of 130 yuan/mt, with the average price quoted at a premium of 190 yuan/mt, up 50 yuan/mt from the previous trading day; the SMM #1 copper cathode price ranged from 98,230 to 99,410 yuan/mt. In the morning session, the SHFE copper 2601 contract rose from 98,500 yuan/mt to above 99,600 yuan/mt, before giving back some of the gains. The contango price spread between the nearby futures contracts fluctuated between 120-60 yuan/mt, and the import loss for the current month's SHFE copper contract was around 1,200 yuan/mt.

As the day marked the last trading day of 2025 and also coincided with the final calendar day, enterprises largely halted trading due to considerations such as settlement, with only a small number of downstream buyers still making necessary purchases, resulting in limited transactions. In the morning, suppliers offered spot cargo at discounts around 200 yuan/mt, with some deals concluded in Jiangsu and Shanghai; high-quality copper, such as Jinchuan (plate), traded at discounts around 150 yuan/mt. During the session, as copper prices climbed to 99,600 yuan/mt, suppliers slightly lowered their offers to discounts of 250 yuan/mt, but low-priced sources were scarce.

Looking ahead to next week, after the New Year's Day holiday, considering the funding costs associated with the holiday, spot discounts for SHFE copper are expected to narrow compared to this week. As the delivery date approaches, suppliers are likely to send more cargo to delivery warehouses to facilitate settlement, and spot discounts for SHFE copper are anticipated to gradually shrink.