SMM News on July 22:
Today, spot prices for SMM #1 copper cathode against the August 2508 contract are reported at premiums of 160-320 yuan/mt, with an average premium of 240 yuan/mt, up 20 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranges from 79,630 to 79,880 yuan/mt. In the morning session, the SHFE copper futures price slipped from 79,760 yuan/mt to 79,560 yuan/mt, with a Contango spread of C80-C60 yuan/mt between consecutive months.
During the day, brand price spreads widened further, and spot premiums seemed high, but they were actually only for brands involved in trade settlements. Actual transactions in other regions like Changzhou, such as for Tiefeng, Zhongtiaoshan PC, and Zhongjin, were at premiums of 60-80 yuan/mt.
Smelters have replenished supplies to the Shanghai area this week, but standard-quality and high-quality copper, which are the mainstream for trade settlements, remain in short supply. It is expected that price spreads will still be large tomorrow, and downstream buyers can make just-in-time procurement.
