Today, the SMM #1 copper cathode spot prices against the SHFE copper 2602 contract were quoted at a discount of 310-220 yuan/mt, with the average discount at 265 yuan/mt, down 35 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 101,140-101,600 yuan/mt. In the morning session, the SHFE copper 2602 contract opened lower with a gap and trended downward with fluctuations. It opened with a quick gap-down decline, then rebounded slightly briefly, before weakening again and falling to a low of 101,610 yuan/mt. It then fluctuated between 101,860 and 102,200 yuan/mt, closing at 101,880 yuan/mt. The Contango spread between nearby contracts was between 340 and 270 yuan/mt. The import loss for the current SHFE copper contract month was between 610-730 yuan/mt.
At the beginning of the morning session, suppliers offered Guixi and Jinchuan (plate) at discounts of 220-150 yuan/mt. Standard-quality copper was offered at discounts of 300-240 yuan/mt. Among these, Zhongtiaoshan, Yuguang, and Jintong Yusheng started to trade at discounts of 300-280 yuan/mt, while Xiangguang, Lufang, and JCC were offered at a discount of 240 yuan/mt. Registered SX-EW copper supply was tight, thus trading at discounts of 350-330 yuan/mt. Near month-end, some suppliers engaged in destocking, while some buyers still had demand for cargoes with invoices dated this month, leading to higher spot prices for such cargoes. Jinchuan ISA Yongchang, etc., traded quickly at a discount of 330 yuan/mt. In the Changzhou area, supplies such as Xikuang and Tianfu appeared, while northern sources were difficult to sell; all are expected to arrive before the Chinese New Year. Entering the second session, suppliers lowered prices for some supplies. Zhongtiaoshan, Zhongjin, Jintong Yusheng, Yuguang, etc., traded at discounts of 330-280 yuan/mt.
Looking ahead to tomorrow, the inhibitory effect of high copper prices on downstream consumption continues to manifest, leading to weak consumption and consequently inventory accumulation domestically. High inventory continues to widen the price spread between futures contracts, strengthening suppliers' willingness to ship to delivery warehouses, thereby suppressing spot market liquidity and buying enthusiasm, leaving spot discounts lacking momentum for recovery. Although downstream buying the dip exists, its scale is insufficient to reverse the overall discount structure. Therefore, Shanghai spot copper discounts are expected to remain under pressure.
