Social Warehouses Begin Significant Inventory Buildup, Spot Offers Hard to Find Before the Holiday [SMM Shanghai Spot Copper]

SMM, January 27:

Today, #1 copper cathode spot prices against the SHFE 2502 contract were quoted at a discount of 70-20 yuan/mt, with an average price at a discount of 45 yuan/mt, up 15 yuan/mt from the previous trading day. Standard-quality copper was traded at 75,090-75,310 yuan/mt, and high-quality copper at 75,120-75,340 yuan/mt. The SHFE copper 2502 contract initially dipped in the morning session before rebounding, testing 75,140 yuan/mt during the session and fluctuating upward to around 75,400 yuan/mt before the morning session ended. The price spread between the SHFE copper 2502 and 2503 contracts fluctuated at C90-C100 yuan/mt.

Suppliers barely made any offers during the day, and the spot market saw prices but no transactions. The market was quiet at the opening, with no inquiries for spot cargoes as most enterprises had already gone on holiday. Only sporadic downstream inquiries for restocking were seen during the session, with minimal transactions in the market. Mainstream standard-quality copper was traded at a discount of 70-50 yuan/mt, and high-quality copper at a discount of 40-20 yuan/mt. Hydro copper was in tight supply, with few offers available.

According to SMM, significant inventory buildup has already begun in east China this week, with the market seeing prices but no transactions before the Chinese New Year.