SMM, June 9:
In early trading, the SHFE copper 2606 contract opened lower with a gap before rising and then falling. The opening price was 104,680 yuan/mt, after which the price quickly moved downward to a low of 103,960 yuan/mt. The price then stabilized and began to rise, mainly trading between 104,050 yuan/mt and 104,290 yuan/mt. Toward the close, the price pulled back slightly, with a closing price of 103,930 yuan/mt. The Contango spread for the next-month contract was between 70 yuan/mt and 20 yuan/mt, and the import profit margin for SHFE copper against the 2606 contract was between a loss of 580 yuan/mt and a loss of 460 yuan/mt.
During the day, Shanghai copper cathode sales sentiment stood at 2.79, down 0.02 MoM, while procurement sentiment was 2.74, down 0.05 MoM. Historical data can be checked in the database. In early morning trading, suppliers initially quoted standard-quality copper at discounts of 40 yuan/mt to 20 yuan/mt. Brands such as Dajiang PC, Zhongtiaoshan, Jinchuan ISA, Jinfeng, Tiefeng, and Jinchuan ISA Yongchang were quoted at discounts of 40 yuan/mt to 20 yuan/mt. Jinguan, Jinxin, and Jintun PC were quoted at EXW parity. High-quality copper such as Guixi and Jinchuan (plate) were quoted at premiums of 30 yuan/mt to 40 yuan/mt. After sources priced at a discount of 40 yuan/mt were quickly traded, low-priced supplies became hard to find in the market. In the second session, suppliers showed a stronger inclination to hold prices firm, slightly raising their offers. Lufang, Xiangguang, and JCC were quoted at premiums of 20 yuan/mt, with deals gradually done between parity and premiums of 20 yuan/mt. Jinguan, Jinxin, Jintun PC, and Jinfeng were gradually traded at EXW discounts of 20 yuan/mt to parity. Registered SX-EW copper supplies were scarce, with only a few Lao-origin sources circulating, quoted at a discount of 50 yuan/mt.
Looking ahead to tomorrow, as the delivery date approaches and the next-month Contango spread holds at 70 yuan/mt to 20 yuan/mt, suppliers are bullish on premiums in the near term and are holding back from selling. Additionally, SMM understands that some enterprises have exported spot cargoes to bonded warehouses, further tightening available supply. Meanwhile, imports remain closed, limiting inflows from outside China. On balance, with support from consumption and delivery dynamics, the discount for spot copper against the SHFE 2606 contract is expected to continue narrowing tomorrow, with some brands likely to hold at parity to a slight premium.
