Processing Material Enterprises Gradually Close for Holidays, Spot Market Shows Prices Without Transactions [SMM SHFE Spot Copper]

SMM, January 23:

Today, #1 copper cathode spot prices against the SHFE 2502 contract were quoted at a discount of 80-20 yuan/mt, with an average price at a discount of 50 yuan/mt, down 15 yuan/mt from the previous trading day. Standard-quality copper traded at 74,780-75,050 yuan/mt, while high-quality copper traded at 74,820-75,080 yuan/mt. The SHFE copper 2502 contract opened higher but moved downwards during the morning session, testing 75,190 yuan/mt initially before sharply declining, and then fluctuated rangebound around 74,850 yuan/mt. The price spread between the SHFE copper 2502 and 2503 contracts fluctuated at C130-C150 yuan/mt.

During the day, suppliers barely made offers, as downstream enterprises gradually started their holidays, leading to sluggish transactions. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 60-50 yuan/mt, with few offers for high-quality copper. Only a limited number of offers were seen in the market. During the main trading hours, mainstream standard-quality copper was traded at a discount of 80-50 yuan/mt, while high-quality copper was traded at a discount of 40-20 yuan/mt. Hydro copper was scarce and difficult to find offers. Some suppliers, needing cash flow before the holiday, continued to lower their quotes, but by 11 a.m., weak market demand resulted in limited transactions.

Spot premiums continued to decline during the day as downstream processing enterprises gradually started their holidays, and spot procurement was gradually suspended. Due to high logistics costs before the holiday, buyers were reluctant to pick up goods, leaving the spot market in a state of nominal prices without actual transactions.