As the delivery date approaches, the discount narrows; tight supply and high prices of high-quality copper drive the premium higher. [SMM Shanghai Spot Copper]

Today, the SMM #1 copper cathode spot prices against the current month 2601 contract were quoted at a discount of 30 yuan/mt to a premium of 150 yuan/mt, with the average price at a premium of 60 yuan/mt, up 105 yuan/mt from the previous trading day; the SMM #1 copper cathode price was 102,870–103,600 yuan/mt. In the morning session, the SHFE copper 2601 contract showed a narrowing fluctuation trend, opening at 103,200 yuan/mt and rising to a high of 103,600 yuan/mt, then pulling back slightly and fluctuating around 102,900 yuan/mt with gradually narrowing volatility, and by the close, the price rose to 103,400 yuan/mt. The Contango spread between nearby contracts ranged from 310 yuan/mt to 140 yuan/mt, while the import loss for the current month SHFE copper contract was between 1,020–1,080 yuan/mt.

At the beginning of the morning session, suppliers quoted standard-quality copper at a discount of 50 yuan/mt to a premium of 50 yuan/mt. High-quality copper from Jinchuan (plate) was in short supply, resulting in few market quotes and a premium of 150 yuan/mt. Xiangguang, Lufang, JCC, etc., traded at premiums of 50–70 yuan/mt. In Changzhou, copper cathode was traded at discounts of about 70–50 yuan/mt. Entering the second session, downstream buyers countered offers more noticeably. Quotes for Xiangguang, Lufang, JCC, etc., declined, with Lufang and Xiangguang trading at parity to a premium of 20 yuan/mt, JCC at a premium of 30–50 yuan/mt, while offers for Zhongtiaoshan, etc., remained almost unchanged.

Looking ahead to tomorrow, as the delivery date approaches, the premium structure is expected to persist, but further upside room is constrained by downstream acceptance and the progress of warrant declarations. If the price spread does not narrow significantly, spot premiums may fluctuate at highs.