Ivanhoe Collaborates with SQM to Explore for Copper in Chile; LME Copper Fluctuated and Closed Higher Overnight [SMM Copper Morning Meeting Minutes]

Thursday, January 29, 2026
Futures: LME copper opened at $13,111/mt overnight. At the beginning of the session, it fluctuated considerably and fell to $13,045/mt, then fluctuated upward and touched a high of $13,190.5/mt. Towards the end of the session, the price center gradually shifted downward before fluctuating upward again, finally closing at $13,120/mt, a gain of 0.74%. Trading volume reached 28,900 lots, and open interest stood at 330,000 lots, decreasing by 1,761 lots from the previous trading day, with the overall performance indicating short covering. The most-traded SHFE copper contract 2603 opened at 102,540 yuan/mt overnight. It touched a low of 102,260 yuan/mt early in the session, then fluctuated upward and reached a high of 103,190 yuan/mt. Subsequently, the price center gradually shifted downward, and it consolidated horizontally near the session's end, finally closing at 102,430 yuan/mt, a gain of 0.18%. Trading volume reached 78,600 lots, and open interest stood at 225,000 lots, decreasing by 2,761 lots from the previous trading day, with the overall performance indicating short covering.
[SMM Copper Morning Conference Minutes] News:
(1) On January 28, Ivanhoe Electric announced it is collaborating with lithium ore producer SQM to conduct copper exploration in parts of the Atacama Desert in northern Chile. Under the cooperation agreement, the two parties will deploy the "Typhoon" geophysical exploration system, supplemented by Computational Geosciences' data inversion software, to search for copper deposits on approximately 2,000 square kilometers of SQM's specific mining concession areas.
Spot:
(1) Shanghai: On the morning of January 28, the SHFE copper 2602 contract showed a "V" shape, opening with a rapid jump followed by a slight decline, probing a low of 101,580 yuan/mt, then gradually rising to close at 103,170 yuan/mt. The contango spread between the front-month and next-month contracts ranged from 350 yuan/mt to 270 yuan/mt. The import arbitrage loss for the front-month SHFE copper contract was between 370-480 yuan/mt. Looking ahead to today, high copper prices continue to suppress downstream consumption, with weak end-user procurement leading to continuous inventory accumulation in China. The persistently wide spread amid high inventory enhances suppliers' willingness to deliver to warehouses, thereby suppressing spot market liquidity and providing support for the recovery of spot premiums/discounts. Furthermore, as month-end approaches, demand for cargoes with invoices dated this month weakens for some suppliers. Prices for cargoes with next-month invoices are rising due to suppliers' firm holding sentiment. The discount center is expected to converge.
(2) Guangdong: On January 28, spot #1 copper cathode in Guangdong was traded at a discount of 350-120 yuan/mt against the front-month contract, with an average discount of 235 yuan/mt, flat from the previous day. SX-EW copper was quoted at a discount of 410-390 yuan/mt, with an average discount of 400 yuan/mt, flat from the previous day. The average price for #1 copper cathode in Guangdong was 101,515 yuan/mt, up 10 yuan/mt from the previous day. The average price for SX-EW copper was 101,350 yuan/mt, up 10 yuan/mt from the previous day. Overall, inventory ended its consecutive decline and increased again, while spot trades were mediocre and premiums were flat compared to the previous day.
(3) Imported copper: On January 28, warrant prices were $13-27/mt, QP February, with the average price down $2/mt from the previous trading day; B/L prices were $15-25/mt, QP February, with the average price down $2/mt from the previous trading day; EQ copper (CIF B/L) was -$18/mt to -$6/mt, QP February, with the average price down $1/mt from the previous trading day. Quotations referred to cargoes arriving in the first half of February.
(4) Secondary copper: At 11:30 on January 28, the futures closing price was 103,170 yuan/mt, up 1,490 yuan/mt from the previous trading day; the average spot premium/discount was -240 yuan/mt, up 25 yuan/mt from the previous trading day. Today, the price of copper scrap remained unchanged MoM. The price of bare bright copper in Guangdong was 90,200-90,400 yuan/mt, unchanged from the previous trading day. The price difference between copper cathode and copper scrap was 3,699 yuan/mt, up 973 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 2,250 yuan/mt. According to the SMM survey, due to the impact of overseas geopolitical factors, market risk aversion sentiment surged sharply, and prices of multiple metal varieties rose. This led to concerns among many end-users about insufficient stockpiling before the Chinese New Year, prompting them to place purchase orders as much as possible within the day. Trading activity in the secondary copper rod market was moderate.
Prices: On the macro front, the US Fed kept interest rates unchanged at its January meeting, but there is still room for interest rate cuts later. US-Iran geopolitical tensions continued to escalate, with the US stepping up action warnings. The Iranian military recently clearly signaled: "Once national security is threatened, the Strait of Hormuz will be blocked." Sentiment in the precious metals market heated up, with gold prices hitting new highs, and copper prices also gained upward momentum. On the fundamentals side, supply side, affected by the widening price spread between futures contracts, suppliers' willingness to ship to delivery warehouses increased, and spot market circulation tightened. Demand side, suppressed by high copper prices, downstream consumption performed weakly. Overall, copper prices are expected to continue rising today.
[The information provided is for reference only. This article does not constitute direct investment research or decision-making advice. Clients should make decisions cautiously and not use this to replace independent judgment. Any decisions made by clients are unrelated to SMM.]