SMM News on July 18:
Today, spot prices of SMM #1 copper cathode against the August 2508 contract were reported at a premium of 100-250 yuan/mt, with an average premium of 175 yuan/mt, up 70 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,490 to 78,830 yuan/mt. In the morning session, the SHFE copper 2508 contract expanded from 78,300 yuan/mt to above 78,500 yuan/mt, and the price spread between futures contracts shifted to a CONTANGO structure, fluctuating between C30-C10 yuan/mt.
During the day, brand price spreads widened significantly, catching market buyers off guard. Most spot traders with long-term contracts to fulfill were unable to secure low-priced supplies. In Changzhou, the market, which had seen parity transactions the previous day, saw prices rise to around a premium of 50 yuan/mt. SX-EW supplies were only available from Myanmar and other sources, with transactions occurring near parity prices.
Looking ahead to next week, if smelters promptly replenish supplies to Shanghai warehouses over the weekend, this situation may ease. However, if the replenishment is delayed, it is expected that there will still be a shortage of brands for contract delivery early next week.
