British Columbia Increases Budget to Assist Mining Rights Approval, LME Copper Fluctuated and Closed Higher Overnight [SMM Copper Morning Meeting Minutes]

Tuesday, January 27, 2026
Futures: LME copper opened at $13,139/mt overnight. At the beginning of the session, it dipped to $13,033/mt, then the center of copper prices rose straight to a high of $13,311/mt, subsequently fluctuated considerably, and finally closed at $13,183/mt, up 0.42%. Trading volume reached 28,400 lots, and open interest reached 333,000 lots, an increase of 7,465 lots from the previous trading day, overall performance indicated bulls increasing positions. The most-traded SHFE copper 2603 contract opened at 103,260 yuan/mt overnight. At the beginning of the session, it touched a low of 102,760 yuan/mt, then fluctuated upward to a high of 104,100 yuan/mt, subsequently the center of copper prices gradually moved down and finally closed at 103,460 yuan/mt, up 0.68%. Trading volume reached 128,700 lots, and open interest reached 230,000 lots, an increase of 831 lots from the previous trading day, overall performance indicated bulls increasing positions.
[SMM Copper Morning Conference Minutes] News:
(1) On January 26, the Canadian province of British Columbia announced an additional budget of C$3 million to improve the mineral claims licensing and consultation framework. Of this funding, C$1 million is for increasing staff to support fixed approval timelines, and C$2 million supports the Mineral Claims Consultation Framework (MCCF) implemented since March 2025. This measure aims to improve approval efficiency, help early-stage exploration and prospecting activities get back on track, and consolidate the province's record mineral exploration spending. The AME association welcomed the additional support.
Spot:
(1) Shanghai: During the morning session on January 26, the SHFE copper 2602 contract showed a pattern of jumping higher and pulling up, followed by a slight downward trend. It opened with a rapid jump and pull-up, rising from around 102,830 yuan/mt to a high of 103,870 yuan/mt, then dropped slightly, briefly touched a high of 103,740 yuan/mt, and continued to decline slightly, closing at 102,510 yuan/mt. The Contango price spread between futures contracts for the front-month and the next month ranged from 400 yuan/mt to 270 yuan/mt. The import loss for SHFE front-month copper was between 530-670 yuan/mt. Looking ahead to today, spot discounts are expected to remain under pressure. Shanghai experienced slight destocking yesterday, warehouse withdrawals improved, but deliveries to warehouses are still ongoing. In the discount environment, the widening spread between front-month and next-month contracts enhanced suppliers' willingness to ship to delivery warehouses, further suppressing spot buying enthusiasm. If downstream acceptance of the current price does not improve, the market will continue the situation of "deep discounts and sluggish transactions".
(2) Guangdong: On January 26, spot #1 copper cathode in Guangdong was at a discount of 300-120 yuan/mt against the front-month contract, with an average discount of 210 yuan/mt, down 75 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 360-340 yuan/mt, with an average discount of 350 yuan/mt, down 120 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 102,660 yuan/mt, up 1,865 yuan/mt from the previous trading day. The average price of SX-EW copper was 102,520 yuan/mt, up 1,820 yuan/mt from the previous trading day. Overall, the sharp rise in copper prices led to low downstream purchasing desire, and spot prices were at a significant discount. It is expected that there will still be little improvement in the short term.
(3) Imported copper: On January 26, warrant prices were $15 to $29/mt, QP February, with the average price unchanged from the previous trading day; B/L prices were $17 to $27/mt, QP February, with the average price unchanged from the previous trading day. EQ copper (CIF B/L) was at -$16 to -$6/mt, QP February, with the average price unchanged from the previous trading day. The quotations referred to shipments arriving in mid-to-late January and early February.
(4) Secondary copper: At 11:30 on January 26, futures closing price was 102,280 yuan/mt, up 1,530 yuan/mt from the previous trading day. The average spot premiums/discounts were -230 yuan/mt, down 50 yuan/mt from the previous trading day. Today, the price of copper scrap rose 1,400 yuan/mt MoM. The price of bare bright copper in Guangdong was 90,700-90,900 yuan/mt, up 1,400 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 2,815 yuan/mt, down 50 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,660 yuan/mt. According to the SMM survey, copper prices surged again during the day, boosting the willingness of copper scrap suppliers to hold onto their stocks. However, high copper prices constrained downstream orders for secondary copper rod enterprises, resulting in a sluggish market.
Prices: On the macro front, US media reported that Trump released an optimistic signal regarding a diplomatic agreement with Iran. Additionally, he threatened to raise South Korea's tariff rate from 15% to 25%, and there is a high probability (up to 80%) of a US government shutdown by the end of January. These multiple factors increased policy uncertainty in the US, weakening the US dollar and providing support for copper prices. Fundamentally, the supply side saw marginal improvement in imported arrivals, while domestic arrivals decreased slightly, but overall supply remained adequate. On the demand side, rising copper prices led to increased wait-and-see sentiment, reducing purchase willingness. In terms of inventory, as Chinese New Year approaches and copper prices retreated last week, downstream buyers' willingness to stockpile at lower prices strengthened, leading to a marginal recovery in market activity. As of Monday, January 26, SMM national mainstream copper inventories decreased 1.49% WoW. Overall, supported by multiple positive factors, it is expected that copper prices will continue to rise today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make prudent decisions and not rely solely on this information. Any decision made by clients is unrelated to SMM.]