SMM News on July 17:
Today, spot prices of SMM #1 copper cathode against the August 2508 contract were reported at premiums of 60-150 yuan/mt, with an average premium of 105 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 77,950 to 78,090 yuan/mt. In the morning session, the SHFE copper 2508 contract fluctuated rangebound between 77,880 and 77,950 yuan/mt, with the price spread between futures contracts oscillating between Contango and backwardation structure.
Actual transactions weakened during the day, but mainstream standard-quality copper in the Shanghai region was truly hard to find, and high-quality copper supplies were scarce, leading to high prices. However, in the Changzhou region, the actual transaction prices for supplies from Tiefeng and Yuguang were relatively low, with some downstream buyers securing standard-quality copper supplies and continuing to wait for premiums to weaken.
Looking ahead to tomorrow, amid the outflow of warrants, spot premiums may fall further.
