Copper prices center shifted lower, end-use demand saw significant volume growth, and SHFE copper spot premiums stabilized slightly [SMM SHFE Copper Spot]

SMM, September 10:

Today, spot prices for SMM #1 copper cathode against the SHFE copper 2609 contract were quoted at a premium of 10 yuan/mt to 160 yuan/mt, with an average of 85 yuan/mt, down 45 yuan/mt from the previous trading day. The SHFE copper 2609 contract retreated after multiple rapid rises, opening at 112,400 yuan/mt, repeatedly testing up to around 112,550 yuan/mt before pulling back during the session, and falling quickly near the close to a low of 112,190 yuan/mt, before closing at 112,290 yuan/mt. The backwardation spread between the front and next month contracts ranged from 550 yuan/mt to 620 yuan/mt, and the import profit margin for SHFE copper against the 2609 contract for the current month stood at a loss of 800 yuan/mt to 690 yuan/mt.

During the day, selling sentiment for copper cathode in the Shanghai region was 3.12, up 0.13 MoM, while purchasing sentiment was 2.61, down 0.04 MoM. Historical data can be queried in the database. At the start of the morning session, suppliers initially quoted standard-quality copper at a premium of 20 yuan/mt to 40 yuan/mt, then lowered their offers as consumption slowed, with Tiefeng, Zijin, and Yuguang quoted at a premium of 10 yuan/mt, and non-registered copper quoted at a discount of 100 yuan/mt to 80 yuan/mt. In the second session, suppliers raised some spot offers, with Xiangguang quoted at a premium of 80 yuan/mt, Lufang at a premium of 60 yuan/mt, and some non-registered copper at a discount of 170 yuan/mt.

Looking ahead to next week, on the night of September 10, SHFE copper prices pulled back significantly from the previous trading day, erasing all weekly gains, with the SHFE copper 2609 contract trading mainly in the range of 109,000 yuan/mt to 109,700 yuan/mt. As copper prices shifted lower, downstream pricing activity picked up notably. According to SMM, some processing enterprises conducted substantial concentrated pricing during the night session, with overall pricing volume significantly higher than the previous trading day. Driven by this concentrated pricing, downstream raw material procurement demand was released simultaneously, and inquiries and transactions in the Shanghai spot copper cathode market improved markedly from the previous trading day. In addition, the import window opened rarely, and expectations for replenishment of imported copper edged up slightly. Next Tuesday is the delivery day for the SHFE copper 2609 contract, and spot prices against SHFE copper are expected to remain at high premiums after the contract rollover.