SMM News on July 7:
Today, SMM reported that spot premiums for #1 copper cathode against the July 2507 contract ranged from a premium of 50 yuan/mt to a premium of 140 yuan/mt, with an average premium of 95 yuan/mt, a decrease of 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 79,800-79,970 yuan/mt. In the morning session, the futures market fell to 79,700 yuan/mt before briefly rebounding to 79,900 yuan/mt, then continued to decline intermittently. The price spread between futures contracts widened during the day, with the BACK spread between consecutive months fluctuating between 250-280 yuan/mt in the morning trading session.
With concentrated arrivals of imports over the weekend, suppliers actively offloaded their inventory, but the price spread between different brands in the market widened again. In the morning session, suppliers quoted premiums of 80-100 yuan/mt for mainstream standard-quality copper, which later traded at 60-80 yuan/mt. High-quality copper was in short supply, with Jinchuan (plate) copper trading at premiums of 110-140 yuan/mt, and no lower prices were available subsequently. Other supplies, such as those in Changzhou, traded at parity to a premium of 40 yuan/mt. Currently, domestic supplies are relatively tight. The arrival of Russian copper has impacted the market, causing non-registered and non-standard copper prices to decline.
Looking ahead to tomorrow, with the widening of the price spread between futures contracts and the impact of imported supplies, it is expected that spot premiums will have further downside room.
