SMM November 20:
Today, spot prices of SMM #1 copper cathode against the SHFE front-month 2512 contract were quoted at a premium of 10-150 yuan/mt, with an average premium of 80 yuan/mt, down 5 yuan/mt from the previous trading day. The SMM #1 copper cathode price ranged from 86,180 to 86,690 yuan/mt. The inter-month spread fluctuated between a contango of 50 and 10 yuan/mt, while import losses for SHFE front-month copper expanded to within 800 yuan/mt.
Trading sentiment improved during the day, with downstream buyers increasing purchases as copper prices fell. Some low-priced supplies entered the market due to warrant outflows, mainly concentrated in the Changzhou area. Consequently, transaction prices in Changzhou were suppressed by 10-20 yuan/mt.
Looking ahead, as warrants continue to flow out, prices in Jiangsu may remain under pressure. However, some trade demand in Shanghai is expected to support premiums for standard-quality copper supplies.
