SMM News on August 6:
Today, the spot premiums for SMM #1 copper cathode against the August 2508 contract were reported at a range of 50-150 yuan/mt, with an average premium of 100 yuan/mt, a decrease of 30 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,280 to 78,420 yuan/mt. In the morning session, the SHFE copper 2508 contract rose from around 78,180 yuan/mt to 78,260 yuan/mt, with the price spread between futures contracts continuing to fluctuate around 0.
During the day, the quotes for mainstream standard-quality copper took a dive. In the early morning, some suppliers offered premiums around 150 yuan/mt, but these gradually declined. Downstream buyers actually purchased non-mainstream copper sources at premiums of 20-50 yuan/mt. Non-registered copper sources, still offered at a discount of 60 yuan/mt, faced further downward pressure on prices.
Looking ahead to tomorrow, with copper prices expected to remain stable above 78,000 yuan/mt and insufficient new orders from downstream buyers, purchasing demand is anticipated to be constrained, and there is still a risk of further decline in spot premiums.
