SMM Nov. 10:
Today, spot premiums/discounts for SMM #1 copper cathode against the SHFE copper 2511 contract ranged from a discount of 20 yuan/mt to a premium of 130 yuan/mt, with the average premium quoted at 55 yuan/mt, up 15 yuan/mt from the previous trading day. The SMM #1 copper cathode price was 86,360-86,710 yuan/mt. In the morning session, prices rose from around 86,200 yuan/mt to 86,620 yuan/mt before falling to 86,370 yuan/mt, maintaining a Contango structure during the morning trading hours.
Trading sentiment improved during the day. In the morning session, suppliers offered high but sold low, gradually pushing transactions below parity. However, high-quality copper remained very tight, with Jinchuan (plate) and similar grades transacting quickly at premiums of 100-130 yuan/mt, while Guixi material was scarce.
Shanghai experienced destocking this week, mainly because downstream buyers received orders and started purchasing after copper prices fell last week, with warehouse withdrawals mainly occurring on Friday. As the delivery date approaches, spot premiums/discounts for SHFE copper gradually increased, but with copper prices exceeding 86,000 yuan/mt, downstream buyers still showed resistance to high prices. Spot prices against the SHFE copper 2411 contract are expected to trade mainly around parity this week.
