SMM November 6:
Today, spot prices of SMM #1 copper cathode against the current month 2511 contract were at a discount of 40 yuan/mt to a premium of 100 yuan/mt, with the average price reported at a premium of 30 yuan/mt, up 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 85,660 to 86,330 yuan/mt. In the morning session, SHFE copper opened lower and then moved higher, rising from the 85,750 yuan/mt level to 86,300 yuan/mt. The inter-month price spread fluctuated between a contango of 40 yuan/mt and a backwardation of 10 yuan/mt, while import losses for the current month SHFE copper contract were around 600 yuan/mt.
During the day, copper prices continued to recover compared to yesterday. Downstream enterprises showed clear fear of rising prices, while some sellers offered discounts to clear inventory. Spot trading in the morning session improved compared to yesterday. The procurement sentiment for copper cathode in the Shanghai region was 3.05, and the sales sentiment was 3.2.In the morning session, suppliers quoted standard-quality copper at a discount of 30 to 20 yuan/mt, with limited transactions. As the session progressed into the second trading period, trading gradually declined, with concentrated transactions reported at a discount of 40 to 30 yuan/mt. High-quality copper resources maintained firm prices, but trading activity was weak. The price spread between high-quality and standard-quality copper continued to narrow. Non-registered sources saw substantial transactions during the day.
Looking ahead to tomorrow, some point-price order demand is expected to materialize after the rise in copper prices, but the brief recovery in market transactions is unlikely to mask underlying weak demand. Premiums and discounts are expected to remain flat tomorrow.
