SMM, June 10 –
The most-traded SHFE copper 2606 contract opened high and held steady in early trading. The opening price was 103,650 yuan/mt, after which prices rose to a high of 104,260 yuan/mt before pulling back slightly, largely fluctuating between 103,950 yuan/mt and 104,200 yuan/mt, with a closing price of 104,010 yuan/mt. The Contango spread against the next month stood at parity to a backwardation of 10 yuan/mt, while the import profit margin of the SHFE copper 2606 contract ranged from a loss of 350 yuan/mt to a loss of 280 yuan/mt.
During the day, the sales sentiment for Shanghai copper cathode stood at 2.79, unchanged, while the procurement sentiment was 2.68, down 0.06 MoM. Historical data is available in the database. In early trading, suppliers initially quoted standard-quality copper at a discount of 20 yuan/mt to a premium of 20 yuan/mt. Specifically, brands such as Dajiang PC, Zhongtiaoshan, Jinfeng, Tiefeng, and Jinchuan ISA Yongchang were quoted from a discount of 20 yuan/mt to parity, while Lufang, Xiangguang, and JCC were quoted at premiums of 10–20 yuan/mt. Jinguan, Jinxin, and Jintun PC were quoted EXW at parity. High-quality copper such as Guixi, Jinchuan (plate), and Jintun (plate) were quoted at premiums of 30–50 yuan/mt. After sources at a discount of 20 yuan/mt were swiftly traded, low-priced cargoes became hard to find in the market. Entering the second session, suppliers showed a stronger inclination to hold prices firm. Standard-quality copper such as Zijin and Dajiang PC was gradually traded at a discount of 10 yuan/mt to a premium of 10 yuan/mt, while Jinguan, Jinxin, Jintun PC, Jinfeng, and others were traded EXW at parity to a premium of 20 yuan/mt. Registered SX-EW copper, such as BMK and MOOK, was quoted at a discount of 60 yuan/mt.
As delivery approaches, the Contango spread against the next month has stayed between parity and a backwardation of 10 yuan/mt. Suppliers are bullish on short-term premiums and are holding back from selling, with strong sentiment to hold prices firm. After swiftly trading standard-quality copper at a discount of 20 yuan/mt early in the morning, low-priced cargoes became hard to find. On the demand side, downstream users showed limited acceptance of current premium levels, mainly buying on a need-to basis and showing little inclination to chase higher prices. Non-registered copper continued to trade at a discount of 200–180 yuan/mt, suggesting that overall consumption support remains weak. In summary, amid the tug-of-war between delivery-driven price support and limited downstream acceptance, spot premiums against the SHFE 2606 contract are expected to remain within the current pattern tomorrow, with the center of premiums likely to edge up slightly.
