KGHM Sought Mine Investments in Europe and Morocco; Overnight LME Copper and SHFE Copper Both Closed Lower [SMM Copper Morning Meeting Minutes]

Friday, April 17, 2026
Futures: Overnight, LME copper opened at $13,240.5/mt, fluctuated upward in early trading to touch a high of $13,295/mt, then the price center dropped sharply to a low of $13,182.5/mt before swinging wildly, ultimately closing at $13,242/mt, down 0.26%. Trading volume reached 17,000 lots, and open interest stood at 287,000 lots, a decrease of 2,451 lots from the previous trading day, indicating long liquidation. Overnight, the most-traded SHFE copper 2606 contract opened at 102,350 yuan/mt, rising in early trading to 102,510 yuan/mt before the price center dropped sharply to a low of 101,700 yuan/mt, then fluctuated upward to ultimately close at 102,290 yuan/mt, down 0.09%. Trading volume reached 28,500 lots, and open interest stood at 174,000 lots, an increase of 820 lots from the previous trading day, indicating short buildup.
[SMM Copper Morning Meeting Summary] News:
(1) On April 15 (Wednesday), the CEO of copper producer KGHM said the company is seeking to invest in mines in Europe and Morocco to secure ore supply near its Polish smelting base and reduce logistics costs. In addition to its domestic assets in Poland, KGHM operates the Robinson mine in the US and holds a 55% stake in the Sierra Gorda project in Chile. Last month, the company signed a memorandum on raw material cooperation with Morocco's National Office of Hydrocarbons and Mines and Moroccan mining company Managem Group. "We are looking for opportunities to acquire some mineral resources near our Polish smelters," KGHM CEO Remigiusz Paszkiewicz said in an interview at the company's Chilean subsidiary in Santiago. "Morocco is a good option. There is also at least one opportunity in Europe itself. We are currently conducting detection of the ore composition of the deposits," he added, but declined to disclose the company name of the European enterprise KGHM is in talks with. Paszkiewicz said the company has dispatched geologists to Morocco and is awaiting preliminary reports, with results potentially available within the next two weeks.
Spot:
(1) Shanghai: On the morning of April 15, the SHFE copper 2605 contract opened with a gap-up and then moved sideways, with an opening price of 102,060 yuan/mt. After opening, the price jumped, rising to 102,470 yuan/mt, and moved sideways between 102,260 yuan/mt and 102,470 yuan/mt, with a closing price of 102,300 yuan/mt. The inter-month Contango price spread between futures contracts ranged between 80 yuan/mt and 50 yuan/mt. The import profit margin for SHFE copper against the 2605 contract for the current month ranged between a loss of 500 yuan/mt and 420 yuan/mt. Looking ahead to today, from the perspective of supplier behavior, wait-and-see sentiment was strong in early trading, with notable divergence in offers; subsequently, some suppliers chose to offload cargo, mainly considering that downstream consumption expectations weakened after sustained copper price increases, upside room for spot premiums was limited, and the willingness to sell for cash strengthened, driving the overall premiums center downward. On the supply side, attention should be paid to the outflow of unmatched warrants after the contract rollover; if warrants are released in a concentrated manner, this will further suppress spot premiums. In terms of inventory, SMM recorded social inventory at 282,800 mt, a decrease of 17,000 mt from Monday, with the destocking pace showing a slowdown compared to the earlier period. Overall, under the combined effects of strengthened willingness to sell among suppliers and weakened consumption expectations, coupled with warrant outflows, spot premiums against the 2605 contract may edge lower today.
(2) Guangdong: On April 15, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 210 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 130 yuan/mt, down 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 80 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,545 yuan/mt, down 360 yuan/mt from the previous trading day, and the average price of SX-EW copper was 102,455 yuan/mt, down 350 yuan/mt from the previous trading day. Overall, after the contract rollover, market trading activity picked up, and premiums are expected to continue rising today.
(3) Imported copper: On April 15, the average warrant price fell $4/mt from the previous trading day to $69/mt (price range $64-74/mt); the average B/L price fell $4/mt from the previous trading day to $67/mt (price range $62-72/mt); the average EQ copper (CIF B/L) price fell $3/mt from the previous trading day to $37/mt (price range $32-42/mt), with quotes referencing cargoes arriving from late April to early-to-mid May.
(4) Secondary copper: On April 15 at 11:30, the futures closing price was 102,300 yuan/mt, down 90 yuan/mt from the previous trading day. The average spot premium was 45 yuan/mt, down 70 yuan/mt from the previous trading day. On April 15, copper scrap prices fell 100 yuan/mt MoM. The copper scrap sales sentiment index rose to 2.74, and the procurement sentiment index rose to 2.29. The price difference between copper cathode and copper scrap was 1,123 yuan/mt, down 49 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,710 yuan/mt. According to an SMM survey, copper prices stabilized at highs, but many copper scrap suppliers believed there was still upside room for copper prices going forward, so they were in no rush to ship in large volumes, instead holding inventory and waiting for copper prices to climb further before shipping.
Prices: On the macro front, Trump claimed to have secured a statement ensuring a nuclear-free Iran with a validity of over 20 years, and the US and Iran may restart negotiations over the weekend; Lebanon and Israel reached a 10-day ceasefire agreement. The US and Iran shifted toward seeking an interim agreement, with the date for the next round of talks yet to be determined, while the US military expanded the scope of its shipping blockade on Iran. The US Fed reiterated that interest rate cuts require inflation to pull back to 2%, with the market pricing in approximately 9 basis points of rate cuts for the full year. Geopolitical situations remained uncertain, but peace talk expectations warmed, and copper prices stabilized. Fundamentals side, supply side, imported copper arrivals maintained a steady pace, while domestic copper arrivals remained relatively low; demand side, downstream enterprises primarily made just-in-time procurement, restocking on an as-needed basis. Inventory side, as of Thursday, April 16, copper inventories across major regions nationwide surveyed by SMM fell 11.46% WoW, while total inventories increased 49,400 mt YoY, marking five consecutive weeks of destocking. Overall, spot copper prices are expected to move sideways and hold up well today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions prudently and not replace their own independent judgment with this information. Any decisions made by clients are not related to SMM.]