Deliverable Supplies Remain Tight, Early Market Premiums Stay Firm [SMM SHFE Spot Copper]

SMM, January 8:

Today, #1 copper cathode spot prices against the SHFE 2501 contract were quoted at a premium of 100-140 yuan/mt, with an average premium of 120 yuan/mt, up 5 yuan/mt from the previous trading day. Standard-quality copper transaction prices were 74,510-74,600 yuan/mt, while high-quality copper transaction prices were 74,530-74,620 yuan/mt. The SHFE copper 2501 contract surged overnight but moved downwards after a higher opening during the morning session, with slight declines fluctuating 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.

The market remained consistent with the previous day, with premiums holding steady as expected. At the beginning of the morning session, mainstream standard-quality copper was quoted at a premium of 100-120 yuan/mt, while high-quality copper, such as CCC-P, was quoted at a premium of 110-130 yuan/mt. Imported copper and supplies from surrounding regions still showed a significant price difference compared to Shanghai. During the main trading session, mainstream standard-quality copper was partially traded at a premium of 110-120 yuan/mt, and high-quality copper was partially traded at a premium of 120-140 yuan/mt. Hydro copper was traded in small volumes at a discount of 20 yuan/mt to parity. By 11 a.m., market quotations had stabilized.

Recently, registered warehouse warrants in the Shanghai region have continued to decline, falling below 15,000 mt as of yesterday. The market's available circulating supply remains tight. However, downstream demand in surrounding regions continues to weaken, with consumption also showing mediocre performance. The near-month contango structure has remained unchanged, and premiums are expected to remain steady tomorrow.