Price Spread Between Alternate-Month C Contracts Slightly Widened, Shanghai Spot Copper Premiums Stabilized [SMM Shanghai Spot Copper]

SMM May 27:

Today, SMM #1 copper cathode spot prices against the current-month 2606 contract were quoted at a discount of 160 yuan/mt to a premium of 10 yuan/mt, with an average quote at a discount of 75 yuan/mt. During the morning session, the SHFE copper 2606 contract showed an "M" pattern, opening at 105,010 yuan/mt. Prices edged up after the open, rising to 105,170 yuan/mt before pulling back, dipping to 104,850 yuan/mt. Prices then stabilized and rebounded, touching a high of 105,290 yuan/mt. Toward the close, prices pulled back slightly, with the closing price at 105,030 yuan/mt. The inter-month Contango price spread between futures contracts ranged from 150 yuan/mt to 120 yuan/mt. The import profit margin for SHFE copper against the 2606 contract for the current month ranged from a loss of 430 yuan/mt to a loss of 380 yuan/mt.

Intraday, the selling sentiment for copper cathode in Shanghai was 2.64, down 0.03 MoM, and the procurement sentiment was 2.6, down 0.04 MoM. Historical data can be accessed in the database. At the start of the morning session, suppliers quoted standard-quality copper at a discount of 150 yuan/mt to a discount of 120 yuan/mt, with Lufang, Xiangguang, and JCC quoted at a discount of 140 yuan/mt to a discount of 120 yuan/mt, Xikuang and ONSAN quoted at a discount of 150 yuan/mt, and Zhongtiaoshan quoted cargoes with invoices dated this month at a discount of 120 yuan/mt to a discount of 110 yuan/mt. Suppliers then quickly lowered prices, with Lufang, Xiangguang, and JCC quoting cargoes with invoices dated next month at a discount of 150 yuan/mt to a discount of 140 yuan/mt, Zhongtiaoshan PC, Jinchuan ISA, Zijin, and ONSAN quoting cargoes with invoices dated next month at a discount of 170 yuan/mt to a discount of 160 yuan/mt, and Jinguan, Jinxin, Jintun PC, and Jinfeng quoting cargoes with invoices dated this month at an ex-factory discount of 110 yuan/mt. High-quality copper was scarce, so quotes remained firm, with Jinchuan high-purity, Jintun large cathode, and Guiye quoted cargoes with invoices dated this month at a discount of 10 yuan/mt to a premium of 10 yuan/mt. Entering the second session, prices saw no significant changes. Jinguan, Jinxin, and Jintun PC were successively traded at an ex-factory discount of 140 yuan/mt to a discount of 110 yuan/mt for cargoes with invoices dated this month. Tongguan was successively traded at an ex-factory discount of 60 yuan/mt to a discount of 50 yuan/mt for cargoes with invoices dated this month. Non-registered copper was successively traded at a discount of 320 yuan/mt to a discount of 290 yuan/mt for cargoes with invoices dated next month.

Looking ahead to tomorrow, copper prices are currently at a relatively high level, downstream demand remains weak, and the market is dominated by just-in-time procurement. Both selling and procurement sentiment continued to pull back slightly, and market trading was sluggish. In terms of market structure, the inter-month Contango price spread between futures contracts remained around 150 yuan/mt, and suppliers showed a strong willingness to hold positions for delivery, with some inclination to hold prices firm. Intraday, some suppliers quoted standard-quality copper with invoices dated this month at a discount of 120 yuan/mt. Overall, Shanghai spot copper prices against the 2606 contract are expected to remain at a discount tomorrow, but downside room is limited.