SMM News on August 8:
Today, spot prices of SMM #1 copper cathode against the August 2508 contract were reported at a premium of 70-170 yuan/mt, with an average premium of 120 yuan/mt, up 10 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 78,450 to 78,610 yuan/mt. SHFE copper futures fluctuated rangebound in the morning session, trading between 78,340 and 78,440 yuan/mt, with the price spread between futures contracts remaining near 0.
Downstream purchasing sentiment improved slightly during the day, driven by downstream stocking needs on Friday. After imported supplies were sold at low prices at the beginning of the week, domestic supply replenishment was limited during the week. After suppliers offered copper at a premium of 30-50 yuan/mt to downstream buyers in the early morning, they raised prices in the second trading session. Tiefeng, Jinfeng, etc., were traded at a premium of 70 yuan/mt; JCC, etc., at a premium of 120 yuan/mt; and Jinchuan (plate), etc., at a premium of 160 yuan/mt.
Looking ahead to next week, the overall supply is expected to be replenished by imports, and the arrival of imported supplies will continue to suppress premiums. However, as the delivery date approaches, domestic deliverable supplies under a contango structure do not need to be sold at low prices, and a price spread against imported supplies is expected to form.
