SMM, March 5:
Today, #1 copper cathode spot prices against the SHFE copper 2503 contract were quoted at a discount of 60-20 yuan/mt, with an average price at a discount of 40 yuan/mt, up 30 yuan/mt from the previous trading day. Standard-quality copper traded at 76,720-76,860 yuan/mt, while high-quality copper traded at 76,740-76,880 yuan/mt. The SHFE copper 2503 contract edged down slightly from the previous day, fluctuating rangebound around 76,880 yuan/mt during the morning session and climbing to test 76,960 yuan/mt before the session ended. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at C50-C80 yuan/mt.
The intraday price spread narrowed significantly, and suppliers showed strong sentiment to hold back cargoes. At the beginning of the session, mainstream standard-quality copper was quoted at a discount of 60-40 yuan/mt, while high-quality copper was quoted at a discount of 40-20 yuan/mt. A small amount of low-priced standard-quality copper was quickly snapped up, and suppliers held firm on their offers. As the price spread narrowed, offers were raised accordingly. During the main trading session, mainstream standard-quality copper was traded at a discount of 50-40 yuan/mt, and high-quality copper was traded at a discount of 30-20 yuan/mt. Hydro copper with invoices dated next month was traded at a discount of around 100 yuan/mt. Prices of non-registered cargoes rose significantly, showing almost no price difference with hydro copper.
Although spot market transactions showed no significant improvement during the day, the depletion of previously available non-registered cargoes and reduced imports led to increased expectations of tight domestic supply. The price spread between non-registered cargoes and mainstream standard-quality copper continued to narrow, and the narrowing price spread forced spot premiums to rise. Spot premiums are expected to fluctuate slightly below parity tomorrow.
