Glencore Plans to Sell Stake in Congo Copper Mine, LME Copper and SHFE Copper Both Fell Overnight [SMM Copper Morning Meeting Minutes]

Thursday, February 5, 2026
Futures: LME copper opened at $13,355.5/mt overnight, reaching an early high of $13,398/mt before its price center fluctuated downward, touching a low of $12,949/mt near the session's end and finally closing at $13,040/mt, down 2.76%. Trading volume reached 26,000 lots, a decrease of 12,334 lots from the previous session; open interest stood at 332,000 lots, an increase of 6,542 lots from the previous session, with the overall performance mainly reflecting increased bear positions. The most-traded SHFE copper 2603 contract opened at 104,000 yuan/mt overnight, hitting an early high of 104,700 yuan/mt before its center fluctuated downward, touching a low of 102,100 yuan/mt near the session's end and finally closing at 102,590 yuan/mt, down 2.22%. Trading volume reached 132,000 lots, a decrease of 109,000 lots from the previous session; open interest stood at 189,000 lots, a decrease of 3,579 lots from the previous session, with the overall performance mainly reflecting reduced bull positions.
[SMM Copper Morning Meeting Minutes] News:
(1) On February 3, Swiss mining giant Glencore announced it had reached a non-binding agreement with the US-backed mining fund—the Orion Critical Minerals Consortium (Orion CMC)—to sell approximately 40% of its stakes in two major mines in the DRC, Mutanda Mining and Kamoto Copper Company, with an overall valuation of about $9 billion. Glencore stated that this move aims to strengthen cooperation with the US and its allies in critical mineral supply chains, and the company will continue to be responsible for mine operations. The transaction is still subject to relevant regulatory and final approvals.
Spot:
(1) Shanghai: During the morning session on February 4, the SHFE copper 2602 contract showed a slight fluctuation followed by a downward trend, opening at 104,950 yuan/mt. After opening, it fluctuated between 104,500 yuan/mt and 105,150 yuan/mt before declining to a low of 103,520 yuan/mt, closing at 103,830 yuan/mt. The contango spread between nearby months ranged from 430 yuan/mt to 300 yuan/mt, while the import profit margin for the current SHFE copper contract was between a loss of 640 yuan/mt and 510 yuan/mt. Looking ahead to today, the spot copper market is expected to continue its pattern of weak supply and demand. The slight widening of the contango spread further encourages suppliers to convert some spot cargo into warrants, limiting further tightening of spot liquidity. Some smelters are choosing to stockpile for delivery, coupled with suppliers' evident sentiment to hold prices firm, resulting in limited tradable spot cargo in the market, which will support the spot discount structure. As the holiday approaches, downstream enterprises' procurement pace generally slows down, with most entering the final stages of pre-holiday stockpiling or production adjustments, suppressing actual trading activity. Demand-side factors are unlikely to provide sustained boosts to prices. Amid intertwined factors such as high copper prices, tight supply, firm pricing by holders, and contango pressure, spot discounts are expected to narrow slightly further today.
(2) Guangdong: On February 4, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 260-60 yuan/mt, with the average discount at 160 yuan/mt, up 60 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 330-290 yuan/mt, with the average discount at 310 yuan/mt, up 60 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 104,640 yuan/mt, up 3,085 yuan/mt from the previous trading day, while the average price of SX-EW copper was 104,490 yuan/mt, up 3,085 yuan/mt from the previous trading day. Overall, active restocking by traders stimulated premiums to rise, and trading activity yesterday was better than the day before.
(3) Imported copper: On February 4, warrant prices were $26-46/mt, QP February, with the average price flat from the previous trading day; B/L prices were $34-52/mt, QP March, with the average price flat from the previous trading day; EQ copper (CIF B/L) was $8-20/mt, QP March, with the average price flat from the previous trading day. Quotations referred to cargoes arriving in mid-February.
(4) Secondary copper: At 11:30 on February 4, the futures closing price was 103,830 yuan/mt, up 2,730 yuan/mt from the previous trading day, while the average spot premium/discount was -100 yuan/mt, up 20 yuan/mt from the previous trading day. The price of copper scrap rose 1,000 yuan/mt MoM from the previous day. The price of bare bright copper in Guangdong was 89,800-90,000 yuan/mt, up 1,000 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 4,939 yuan/mt, up 1,651 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,770 yuan/mt. According to the SMM survey, as copper prices stabilized and the Chinese New Year approached, both suppliers of copper scrap and secondary copper rod enterprises actively engaged in procurement and sales. Meanwhile, some secondary copper rod enterprises indicated that after today, most logistics services would be on holiday, resulting in good trading activity in the copper scrap market during the day.
Prices: On the macro front, US January ADP figures fell short of expectations, the labour market continued to slow down, and the US dollar index strengthened, weighing on copper prices. Additionally, LME inventory hit its highest level since March, and the inventory increase put pressure on copper prices. On the fundamentals side, spot circulation on the supply side narrowed somewhat, with some brands held in warrant form. Demand side, overall demand was weak due to the rebound in copper prices. Overall, copper prices are expected to face resistance on the upside today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions cautiously and not use this to replace independent judgment. Any decisions made by clients are unrelated to SMM.]