Peru's Energy Crisis Pushes Copper Prices Higher; SHFE Copper Spot Discounts Under Pressure but Approaching Delivery Provides Support [SMM Shanghai Spot Copper]

Published: May 12, 2026 14:13

Save

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, Peru's energy crisis has raised market concerns over copper ore supply. Copper prices surged significantly during the night session, and end-users' acceptance of the current high copper prices and spot discounts has declined. According to SMM, downstream orders dropped sharply during the day, with purchasing sentiment subdued and dominated by rigid demand. In terms of market performance, suppliers continuously lowered their offers, and spot cargo has shifted from premiums to discounts, with the discount margin widening. However, Friday marks the last trading day of the SHFE copper 2605 contract. As delivery approaches, spot discounts are widening under the Contango price spread structure, and suppliers' willingness to ship to delivery warehouses is increasing. The delivery logic is expected to provide bottom support for spot discounts, limiting further downside room.

SMM May 12:

SHFE copper 2605 contract moved sideways during the morning session. It opened at 107,200 yuan/mt, then edged down, trading between 106,650-107,100 yuan/mt. Copper prices continued to decline, hitting a low of 106,310 yuan/mt before stabilizing and rebounding, closing at 106,850 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 90-30 yuan/mt. The import profit margin for SHFE copper against the 2605 contract ranged from a loss of 270 yuan/mt to a loss of 190 yuan/mt.

During the day, the selling sentiment for copper cathode in Shanghai was 2.63, down 0.1 MoM, and the purchasing sentiment was 2.46, down 0.17 MoM. Historical data is available in the database. At the start of the morning session, suppliers offered standard-quality copper at discounts of 30 yuan/mt to premiums of 30 yuan/mt. First-round offers for SPCC-ILO, Lufang, Xiangguang, and JCC were at premiums of 10-30 yuan/mt. Dajiang PC, Jinguan, Zhongtiaoshan, Jinfeng, and Zijin were offered at discounts of 20 yuan/mt to parity. Jinchuan ISA Yongchang was offered at a discount of 30 yuan/mt. In the second session, suppliers further lowered prices. High-quality copper Jinchuan (plate) and Jintun plate were offered at premiums of 20 yuan/mt. ONSAN and Zhongtiaoshan were offered at discounts of 40 yuan/mt. Lufang, Xiangguang, and JCC were offered at discounts of 10 yuan/mt. Jinguan, Jintun PC, and Jinxin traded at discounts of 30-20 yuan/mt on an ex-factory basis. Non-registered copper traded at discounts of 160-140 yuan/mt.

Looking ahead, Peru's energy crisis has raised market concerns over copper ore supply, and copper prices surged during the night session. End-users' acceptance of current high copper prices and spot discounts has declined. According to SMM, downstream orders dropped sharply during the day, with purchasing sentiment subdued and buying limited to rigid demand. From market performance, suppliers continuously lowered offers, with spot cargo shifting from premiums to discounts, and the discount range widened. However, as Friday marks the last trading day for the SHFE copper 2605 contract, with delivery approaching, spot discounts are expected to widen under the Contango price spread structure. Suppliers' willingness to ship to delivery warehouse is increasing, and delivery logic is expected to provide bottom support for spot discounts, limiting further downside.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 mins ago

Data: SHFE, DCE market movement (Jun 08)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 08 Jun , 2026

8 mins ago

2 hours ago

This week, copper social inventories in major regions of China continued destocking [SMM weekly data].

2 hours ago

3 hours ago

Macro Factors Weigh on Copper Prices, SHFE Copper Inter-Month Spread Occasionally Sees Backwardation Structure [SMM Shanghai Spot Copper]

[SMM SHFE Copper Spot] Looking ahead to tomorrow, last Friday (June 5) the US May non-farm payrolls data significantly exceeded expectations, and the March and April non-farm payrolls figures were revised upward. Market expectations for a US Fed interest rate hike this year intensified, pushing the US dollar index back above the 100 mark and exerting notable pressure on copper prices. According to SMM, after the copper price decline, end-user dip-buying sentiment recovered, with active pricing and orders significantly increasing compared with last Friday, boosting overall market trading activity. Meanwhile, suppliers’ willingness to sell at low prices weakened, and today’s spot discount for SHFE copper narrowed markedly from earlier levels. From the perspective of delivery dynamics, next week is the delivery week for the SHFE copper 2606 contract. As delivery approaches, suppliers are more inclined to ship to delivery warehouses, which is likely to further tighten the availability of low-priced cargo and provide support for the spot discount. The spot discount is expected to continue narrowing before delivery.

3 hours ago