Copper Prices Fell Overnight as Bulls Reduced Positions; High Copper Prices Suppressed Demand with Spot Discounts Continuing [SMM Copper Morning Meeting Minutes]

Thursday, June 4, 2026
Futures: Overnight, LME copper opened at $13,948.5/mt, touched a high of $13,952/mt at the beginning of the session, then the price center moved downward throughout the session, touching a low of $13,785/mt near the close, and finally closed at $13,785.5/mt, down 1.42%, with trading volume at 21,000 lots and open interest at 272,000 lots, down 370 lots from the previous trading day, mainly reflecting bulls reducing positions. Overnight, the most-traded SHFE copper 2607 contract opened at 106,360 yuan/mt, touched a high of 106,540 yuan/mt right at the open, then the price center oscillated downward, touching a low of 105,730 yuan/mt near the close, and finally closed at 105,860 yuan/mt, down 0.49%, with trading volume at 38,000 lots and open interest at 185,000 lots, down 3,142 lots from the previous trading day, reflecting bulls reducing positions.
[SMM Copper Morning Meeting Summary] News:
(1) Tintina Mines, a junior mining company focused on Chile, raised C$91 million (approximately $65.8 million) in investment backed by Japan's Sumitomo Corp. and the Gignac family to fund the development of its flagship copper-gold asset and consolidate equity in the project. The company said in a statement on Tuesday that the parties would participate in a private placement of subscription receipts, each priced at C$0.68. The receipts will be issued in two tranches of different types. The first tranche totals C$62 million, comprising Tintina's common shares and warrants; the second tranche comprises only common shares, totaling C$29 million. Tintina said approximately C$55 million of the C$91 million raised will be used to advance its Domeyko Sulfuros project toward a final investment decision (FID), with the remaining C$36 million to be used to acquire the project's minority shareholders (currently holding 26.25%). The company added that this implies a pre-money valuation of C$138 million for the Domeyko Sulfuros project.
Spot:
(1) Shanghai: On the morning of June 3, the SHFE copper 2606 contract showed a pattern of opening lower and then rebounding with oscillation. The opening price was 107,000 yuan/mt, after which prices quickly moved down, dipping to 106,520 yuan/mt, then oscillated and rebounded, reaching 106,990 yuan/mt, and pulled back slightly toward the close, with a closing price of 106,920 yuan/mt. The inter-month Contango price spread between futures contracts ranged between 160-100 yuan/mt, and the import profit margin for SHFE copper against the 2606 contract was between a loss of 800 yuan/mt and a loss of 730 yuan/mt. Intraday, the copper price center shifted upward and downstream enterprise consumption weakened. According to SMM, Shanghai spot copper remained around 106,500 yuan/mt, end-user cargo pick-up slowed down, and some copper semis processing enterprises in east China planned to shut down furnaces and cut production due to finished product inventories buildup, indicating that the suppression of demand by high prices further intensified. In addition, entering the delivery month, although copper prices remained at a relatively high level, the inter-month Contango price spread between futures contracts maintained at 160-100 yuan/mt, suppliers' willingness to ship to delivery warehouse increased, and they held prices firm and held back from selling, providing some support for spot discounts. Therefore, both buying and selling sentiment pulled back intraday, and actual transactions were sluggish. Overall, supported by the widening price spread between futures contracts bolstering suppliers' firm pricing and high copper prices suppressing demand, Shanghai spot copper prices against the 2606 contract are expected to remain at a discount today, with limited room for the discount to deepen.
(2) Guangdong: On June 3, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 30 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a discount of 40 yuan/mt, down 40 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 100 yuan/mt, up 40 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 106,680 yuan/mt, up 720 yuan/mt from the previous trading day; the average price of SX-EW copper was 106,585 yuan/mt, up 715 yuan/mt from the previous trading day. Overall, as copper prices continued to rise, suppliers actively cut prices to sell, and overall trading was poor.
(3) Imported copper: On June 3, the average warrant price was flat from the previous trading day at $67/mt (price range 63-71 $/mt); the average B/L price was flat from the previous trading day at $68/mt (price range 64-72 $/mt); the average EQ copper (CIF B/L) price was flat from the previous trading day at $37/mt (price range 32-42 $/mt), with quotes referencing cargoes arriving in June and early July.
(4) Secondary copper: On June 3, the 11:30 futures closing price was 106,920 yuan/mt, up 1,060 yuan/mt from the previous trading day. The average spot premium was -65 yuan/mt, up 5 yuan/mt from the previous trading day. Copper scrap prices rose 300 yuan/mt MoM. The copper scrap sales sentiment index fell to 2.74, and the purchasing sentiment index rose to 2.3. The price difference between copper cathode and copper scrap was 3,503 yuan/mt, up 732 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,730 yuan/mt. According to an SMM survey, copper prices retreated from highs today. Although many copper scrap suppliers were actively selling during the morning session, copper prices continued to decline in the afternoon, and copper scrap suppliers largely stopped selling. Secondary copper rod enterprises bought the dip, and the copper scrap market saw relatively active trading overall.
Prices: On the macro front, US-Iran negotiations remained at an impasse, and tensions in the Gulf region escalated again, driving the US dollar higher and pressuring copper prices. In addition, US ADP employment data exceeded market expectations, and the New York Fed president stated there was no need to raise or cut interest rates at present. On the fundamentals, supply side, influenced by the widening price spread between futures contracts, suppliers' willingness to ship to delivery warehouses increased, and spot cargo circulation in the market was tight. Demand side, overall demand was mediocre, suppressed by high copper prices. Overall, copper prices are expected to maintain a fluctuating trend within a narrow range today.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make prudent decisions and not use this as a substitute for independent judgment. Any decisions made by clients are not related to SMM.]