Today, SMM's #1 copper cathode spot prices against the current month 2602 contract were quoted at a discount of 300 yuan/mt to a discount of 160 yuan/mt, with the average price at a discount of 230 yuan/mt, down 50 yuan/mt from the previous trading day; the SMM #1 copper cathode price was 102,200-102,670 yuan/mt. In the morning session, the SHFE copper 2602 contract showed a pattern of gap-up rally followed by a slight decline, quickly gapping up at the open from around 102,830 yuan/mt to a high of 103,870 yuan/mt, then dropping slightly, briefly touching a high of 103,740 yuan/mt, before continuing to decline gently, closing at 102,510 yuan/mt. The Contango price spread between adjacent months ranged from 400 yuan/mt to 270 yuan/mt, while the import loss for the current month's SHFE copper contract was between 530-670 yuan/mt.
At the start of the morning session, suppliers quoted Guixi and Jinchuan (plate) at a discount of 120 yuan/mt to a discount of 60 yuan/mt; standard-quality copper was quoted at a discount of 300 yuan/mt to a discount of 110 yuan/mt, with deals initially done for Zhongtiaoshan, Zhongjin, etc., at a discount of 270 yuan/mt to a discount of 300 yuan/mt, while Xiangguang, Lufang, etc., were quoted at a discount of 240 yuan/mt to a discount of 110 yuan/mt. Entering the second session, suppliers further lowered prices; registered SX-EW copper supply was tight, with only some Myanmar-origin material circulating, hence quotes remained firm, with deals done at a discount of 350 yuan/mt; for standard-quality copper, deals for Lufang, Xiangguang, etc., were done at a discount of 270 yuan/mt, while Zhongjin, Jintong Yusheng, Yuguang, etc., traded at a discount of 320 yuan/mt to a discount of 300 yuan/mt.
Looking ahead to tomorrow, spot discounts are expected to remain under pressure. Shanghai saw slight destocking today, and warehouse withdrawals improved, but deliveries to warehouses are still ongoing. Amid the discount environment, the widening Contango spread between adjacent months has increased suppliers' willingness to ship to delivery warehouses, further dampening spot buying interest. If downstream acceptance of current prices does not improve, the market is likely to continue experiencing "deep discounts and sluggish trading."
