As the final trading day approaches, Shanghai spot copper premiums remain strong [SMM Shanghai spot copper]

SMM, June 12:

The SHFE copper 2606 contract showed a weak upward trend in early trading. The opening price was 103,540 yuan/mt, and after opening, the price surged quickly to 104,510 yuan/mt before edging down slightly, dipping to 104,260 yuan/mt and then stabilizing and rebounding. It rose again to 104,730 yuan/mt, edged down slightly, and then continued to move higher, touching a high of 105,020 yuan/mt. By the close, prices edged down slightly, with the closing price at 104,800 yuan/mt. The spread between the front-month and next-month contracts ranged from a contango of 60 yuan/mt to a backwardation of 20 yuan/mt, while the front-month import profit margin for SHFE copper against the 2606 contract ranged from a loss of 270 yuan/mt to a loss of 180 yuan/mt.

During the day, Shanghai copper cathode sales sentiment was 2.74, down 0.05 MoM, and procurement sentiment was 2.61, down 0.07 MoM. Historical data can be queried in the database. At the start of the morning session, suppliers provided initial quotes for standard-quality copper at premiums of 20-30 yuan/mt, with JCC, Lufang, etc. offering at premiums of 20-30 yuan/mt and Zhongtiaoshan, Jinfeng, etc. offering at a premium of 20 yuan/mt. Then suppliers slightly raised their quotes, with standard-quality copper Xiangguang, Lufang, JCC, etc. offered at premiums of 30-40 yuan/mt; Tiefeng, Zhongtiaoshan, Zijin, HMG-S, Dajiang HS, etc. offered from parity to a premium of 40 yuan/mt; Jinguan, Jinxin, Jintun PC offered EXW at a premium of 30 yuan/mt; and high-quality copper Jintun large plate offered at a premium of 60 yuan/mt. In the second session, suppliers slightly lowered their quotes. Registered SX-EW copper from Laos was quoted at a discount of 20 yuan/mt, and non-registered copper was traded at discounts of 160-150 yuan/mt.

Looking ahead to tomorrow, next Monday is the last trading day for the SHFE copper 2606 contract. In accordance with SMM’s #1 copper cathode price assessment methodology, SMM always quotes against the front-month contract. During the day, the copper price center moved higher, while downstream procurement sentiment pulled back slightly, indicating that high prices had some inhibitory effect on demand. As delivery approaches, suppliers’ willingness to hold positions for delivery is strong, and available supply is tight. Additionally, spot inventory in Guangdong remains at a low level, with offers at a premium of around 200 yuan/mt, which may bolster premiums in the Shanghai market. Overall, next Monday’s SHFE spot copper premiums against the 06 contract are expected to remain at a premium level.