Today, SMM's spot prices for #1 copper cathode against the SHFE copper 2602 contract were quoted at a discount of 280-200 yuan/mt, with the average discount at 240 yuan/mt, up 25 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 101,320 to 102,000 yuan/mt. In the morning session, the SHFE copper 2602 contract showed a "V" shape, rising quickly after opening and then dipping slightly to a low of 101,580 yuan/mt before gradually climbing to a closing price of 103,170 yuan/mt. The contango spread between nearby contracts ranged from 350 to 270 yuan/mt, while the import loss for the current-month SHFE copper contract stood at 370-480 yuan/mt.
At the start of the morning session, suppliers quoted high-quality copper, Jinchuan (plate), at a discount of 240 yuan/mt; standard-quality copper was quoted at a discount of 300-230 yuan/mt, with Zhongtiaoshan, Yuguang, and Dajiang HS starting to trade at discounts of 300-280 yuan/mt, while Xiangguang, Lufang, and JCC were quoted at discounts of 250-230 yuan/mt. Registered SX-EW copper supply was tight, with only some Myanmar and BMK material available, quoted at discounts of 320-310 yuan/mt. Entering the second session, procurement demand in the market increased. After some Jinchuan (plate) was quickly traded at a discount of 240 yuan/mt, the quote was adjusted to a discount of 200 yuan/mt. After Zhongtiaoshan and Yuguang traded at a discount of 280 yuan/mt, suppliers' willingness to sell at fixed prices decreased, and their inclination to hold prices firm increased. Non-registered copper traded at discounts of 370-350 yuan/mt.
During the day, procurement demand for spot copper in Shanghai slightly increased, with suppliers showing a strong willingness to hold prices firm, leading to a slight narrowing of spot discounts. Looking ahead to tomorrow, high copper prices continue to suppress downstream consumption, and weak end-user procurement has led to a continuous accumulation of domestic inventory. The widening price spread between futures contracts amid high inventory has strengthened suppliers' willingness to ship to delivery warehouses, thereby restraining liquidity in the spot market and providing support for the recovery of spot premiums and discounts. Additionally, as month-end approaches, demand for cargoes with invoices dated this month has declined, while prices for next-month invoices remain firm. Spot discounts for SHFE copper are expected to remain under pressure.
