SMM News on July 21:
Today, spot SMM #1 copper cathode is quoted at a premium of 150-290 yuan/mt against the August 2508 contract, with an average premium of 220 yuan/mt, up 45 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranges from 79,320 to 79,790 yuan/mt. In the morning session, SHFE copper futures rose from 78,880 yuan/mt to 79,500 yuan/mt. The price spread between futures contracts has fully shifted to a Contango structure, currently fluctuating between C80-C40 yuan/mt. The import profit margin has not shown signs of recovery.
The price spread between different brands widened further today. Over the weekend, copper cathode from north China arrived in Shanghai warehouses. Mainstream standard-quality copper, such as Xiangguang, was traded at a premium of 150-200 yuan/mt, while brands like JCC and Jintun Daban were traded at around a premium of 180 yuan/mt. Jinchuan copper cathode remained scarce, with a premium of 280 yuan/mt. Other copper cathode and transactions in Changzhou were only at a premium of 50-90 yuan/mt.
Looking ahead to tomorrow, destocking in Shanghai exceeded 15,000 mt over the weekend, further tightening the supply of mainstream copper cathode. Domestic replenishment has not been timely, and it is expected that mainstream standard-quality copper transactions will remain firm in the first half of the week.
