SMM, January 22:
Today, #1 copper cathode spot prices against the SHFE 2502 contract were quoted at a discount of 70 yuan/mt to parity, with an average price at a discount of 35 yuan/mt, down 30 yuan/mt from the previous trading day. Standard-quality copper traded at 75,370-75,480 yuan/mt, while high-quality copper traded at 75,400-75,530 yuan/mt. The SHFE copper 2502 contract fluctuated rangebound during the morning session around 75,450-75,600 yuan/mt. The price spread between the SHFE copper 2502 and 2503 contracts ranged from C100 to C120 yuan/mt.
Premiums continued to decline in the early morning, and consumption in the spot market remained sluggish. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 50-40 yuan/mt, with few offers for high-quality copper. Only a limited number of offers were seen in the market, and after premiums fell in surrounding regions, prices in Shanghai followed suit. During the main trading session, mainstream standard-quality copper was traded at a discount of 70-50 yuan/mt, while high-quality copper was traded at a discount of 40 yuan/mt to parity. Hydro copper was in tight supply, with few offers available. By 11 a.m., market prices gradually stabilized.
Premiums declined as expected during the day, with both supply and demand in the market remaining inactive. Some traders had already started their holidays, and downstream purchasing gradually ceased as logistics operations were suspended. The market is expected to become even quieter tomorrow.
