Available Spot Copper Remained Tight, Shanghai Spot Copper Premiums Continued to Rise [SMM Shanghai Spot Copper]

SMM April 28:

The SHFE copper 2605 contract showed a "V" pattern in the morning session. It opened at 102,380 yuan/mt, pulled back slightly after the opening to trade between 102,070 yuan/mt and 102,340 yuan/mt, then continued to decline to a low of 101,820 yuan/mt before stabilizing and rebounding, closing at 102,250 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 80 yuan/mt to 20 yuan/mt. Import profit margin for Shanghai spot copper against the 2605 contract ranged from a loss of 130 yuan/mt to 50 yuan/mt.

Intraday, copper cathode trading sentiment in Shanghai rebounded. The selling sentiment was 2.66, down 0.08 MoM, and the purchasing sentiment was 2.63, up 0.15 MoM.. In the early morning session, suppliers offered standard-quality copper such as Lufang and JCC at premiums of 20-60 yuan/mt, Tiefeng and Dajiang PC with cargoes with invoices dated next month at a premium of 20 yuan/mt, and Zhongtiaoshan with cargoes with invoices dated this month at a premium of 60 yuan/mt which were quickly traded. High-quality copper such as Jinchuan (plate) was offered with cargoes with invoices dated this month at a premium of 70 yuan/mt. In the second trading session, low-priced cargoes were hard to find. Jinguan, Jintun PC, Jinfeng, and Jinxin were offered at factory-pickup cargoes with invoices dated this month at premiums of 60-80 yuan/mt. Lufang and JCC were offered with cargoes with invoices dated next month at premiums of 50-60 yuan/mt. High-quality copper Jintun (plate) was offered with cargoes with invoices dated this month at a factory-pickup premium of 100 yuan/mt.

Looking ahead to tomorrow, some downstream enterprises prefer to purchase directly from smelters to ensure invoice issuance for the current month, diverting some spot demand from the trading market. Demand side, with the Labour Day holiday approaching, some downstream enterprises have pre-holiday stockpiling needs, but according to SMM, actual demand growth remains limited. At current copper prices and premium levels, some downstream enterprises show low acceptance and are reluctant to chase higher prices. Supplier side, with month-end settlement approaching, some suppliers are less eager to make shipments, and available low-priced cargoes are limited, supporting spot premiums. Overall, amid the interplay between tight invoices and high prices suppressing demand, Shanghai spot copper is expected to maintain premiums against the 2605 contract tomorrow.