Copper Prices Rise While Early Trading Premiums Slightly Decline, Mainly Due to Increased Import Arrivals [SMM SHFE Spot Copper]

SMM, January 7:

Today, #1 copper cathode spot premiums against the SHFE 2501 contract were quoted at 90-140 yuan/mt, with an average of 115 yuan/mt, down 10 yuan/mt from the previous trading day. Standard-quality copper transaction prices ranged from 74,220 to 74,490 yuan/mt, while high-quality copper transaction prices ranged from 74,240 to 74,510 yuan/mt. The SHFE copper 2501 contract surged overnight but moved downwards after a higher opening during the morning session, fluctuating slightly around 74,250 yuan/mt. The price spread between the SHFE copper 2501 and 2502 contracts fluctuated in a contango of 40-10 yuan/mt.

In the early morning market, deliverable spot cargoes remained scarce, and mainstream standard-quality copper was tight and priced high. At the beginning of trading, mainstream standard-quality copper was quoted at premiums of around 100-130 yuan/mt, while high-quality copper, such as CCC-P, was quoted at premiums of 130-150 yuan/mt with limited transactions. Some suppliers were actively offloading at the start of the year, leading to slightly improved market activity compared to the previous day. During the main trading session, mainstream standard-quality copper was quoted at premiums of 90-110 yuan/mt, and high-quality copper at premiums of 120-140 yuan/mt, with some transactions. Hydro copper was quoted at a discount of 20 yuan/mt to parity, with limited transactions. By 11:00 a.m., market quotations had stabilized.

Throughout the day, suppliers showed improved sentiment compared to the previous day, but the arrival of imported copper increased selling pressure. Morning premiums declined slightly compared to the previous day. However, deliverable spot cargoes remained scarce recently, and spot premiums are expected to remain stable tomorrow.