LME Base Metals Cash to 3-Month Backwardation/Contango (2017-9-4)

[SMM Brass Billet News] The industry has entered the traditional consumption off-season, with weak end-use demand showing no signs of improvement, which has become the core factor dragging down industry performance. Order follow-through in key downstream sectors such as home appliances, refrigeration, and sanitary hardware remained sluggish. End-users exhibited strong wait-and-see sentiment, with subdued purchase willingness, mostly making just-in-time procurement, and new orders were scarce.

According to the China Earthquake Networks Center, a magnitude 6.9 earthquake struck the Antofagasta Region in northern Chile at 17:52 local time on May 25 (05:52 Beijing time on May 26, 2026), with a focal depth of approximately 114 kilometers. Within a 200-kilometer radius of the epicenter, 21 earthquakes of magnitude 3 or above have occurred in the past five years, the largest of which was a magnitude 7.3 earthquake on July 19, 2024. According to data from the General Administration of Customs, Chile is the largest source country for China's copper concentrate imports. From January to April 2026, China imported a total of 9.9151 million mt in physical content of copper concentrates, of which 3.0526 million mt in physical content were imported from Chile, accounting for approximately 30.79%.

SMM Morning Meeting Summary: LME copper was closed overnight. The most-traded SHFE copper 2607 contract opened higher with a gap at 106,300 yuan/mt overnight. Copper prices then quickly shifted their center downward, followed by wild swings during which prices dipped to 105,420 yuan/mt. Near the end of the session, prices fluctuated upward and ultimately closed at 105,780 yuan/mt, up 0.39%. The trading volume reached 26,500 lots, and open interest stood at 181,000 lots, down 1,026 lots from the previous trading day, indicating bears reducing their positions.