SMM February 27 news:
Today, SMM #1 copper cathode spot prices against the current month 2603 contract were quoted at a discount of 320-200 yuan/mt, with the average at a discount of 260 yuan/mt, down 25 yuan/mt from the previous trading day. SMM #1 copper cathode prices were 101,710-102,250 yuan/mt. In the early session, the SHFE copper 2603 contract fluctuated rangebound, opening at 102,020 yuan/mt. After opening, prices dropped slightly, touching a low of 101,820 yuan/mt, then began to rise, reaching 102,450 yuan/mt before falling again. After a slight decline to 102,170 yuan/mt, prices rebounded to a high of 102,500 yuan/mt, then edged down to close at 102,180 yuan/mt. The price spread between futures contracts for the next month Contango ranged between 430-360 yuan/mt, while import profit margins for the current month SHFE copper were at a loss of 800-700 yuan/mt.
During the day, both procurement and sales sentiment rose slightly. Shanghai region copper cathode sales sentiment was 2.84, up 0.04 MoM, while procurement sentiment was 2.72, up 0.14 MoM. In the early session, suppliers quoted standard-quality copper at a discount of 350-200 yuan/mt, with Xiangguang, Lufang, etc., offered at a discount of 220-200 yuan/mt, while Dajiang PC, Jinchuan ISA, Zhongtiaoshan, Zijin, Honglu, Yuguang, etc., were quoted at a discount of 300-280 yuan/mt. Jinchuan ISA Yongchang was offered at a discount of 350 yuan/mt. High-quality copper from Guixi and Jinchuan (plate) was quoted at a discount of 200-100 yuan/mt. Entering the second period, suppliers showed strong willingness to hold prices firm, with little change in price ranges. High-quality copper was quoted at a discount of 200-120 yuan/mt, while standard-quality copper from Jinguan and Tongguan was offered at a discount of 260-250 yuan/mt. Deals for Xiangguang, etc., were done at a discount of 220-200 yuan/mt. Additionally, some Peruvian and Japanese cargoes were seen during the day, quoted at a discount of 270-250 yuan/mt. In the Changzhou region, some low-priced cargoes were available, with Tianfu, etc., offered at a discount of 350-340 yuan/mt. SX-EW copper supply was tight, with only Myanmar and other sources circulating, quoted at a discount of 350-340 yuan/mt.
Looking ahead to next week, spot supply of SHFE copper is expected to continue increasing, with some Peruvian and Japanese cargoes likely to be seen. From a market structure perspective, the price spread between futures contracts for the next month Contango widened slightly, and suppliers' willingness to ship to delivery warehouses persisted, continuing to divert spot liquidity. Although suppliers showed a strong inclination to hold prices firm during the day, with some brands maintaining stable quotes, expectations of further warrant outflows remain, which will put additional pressure on spot premiums/discounts. On the demand side, downstream operations have not fully resumed production, and procurement sentiment, though rebounding, remains cautious. Amid a supply-demand mismatch, social inventory continues its buildup trend. From a comprehensive perspective, supply-side pressure is dominant, and spot discounts are expected to remain under pressure next week.
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