[SMM Analysis]Secondary Aluminum Market Remains Strong in Short Term Focus on Demand Recovery and Policy Implementation

According to SMM, some copper rod enterprises in Central China have reported that, given the financial pressure on downstream end-users, they generally tend to bargain down purchasing prices for copper rod and prioritize purchasing through trader channels, leading to a continuous increase in the enterprises' finished product inventories. If the inventory pressure of finished products continues to accumulate, the enterprises may consider implementing production cuts or halting production to mitigate market risks.

》View SMM metal quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo >During the week, copper prices jumped initially and then pulled back, while spot premiums also stopped falling and rebounded. In the first half of the week, copper prices remained above 79,000 yuan/mt, dampening downstream purchasing sentiment and leading to bargain down purchasing prices of spot cargo. However, due to the high copper prices, the BACK price spread between futures contracts for the next month continued to fluctuate around 100 yuan/mt, and suppliers were reluctant to offer discounts on premiums. In the second half of the week, as copper prices fell and the price spread between futures contracts widened, some suppliers offered discounts on premiums. However, as the delivery date approached, the available spot cargo in the market became tight, and spot transactions continued to remain firm above parity. Looking ahead to next week, it is expected that there will be concentrated arrivals of cargo from sources such as Russia in the market. After the contract rollover, spot cargo will still start with high premium quotes, but transactions are expected to gradually pull back to around 100 yuan/mt. 》View SMM metal industry chain database

According to SMM, some copper rod enterprises in Central China have reported that, given the financial pressure on downstream end-users, they generally tend to bargain down purchasing prices of copper rods and prioritize purchasing through trading channels, leading to a continuous increase in the enterprises' finished product inventories. If the inventory pressure of finished products continues to accumulate, the enterprises may consider implementing production cuts or halting production to mitigate market risks.

[SMM Morning Meeting Summary: Expectations for US Fed Interest Rate Cut Intensify, Copper Prices Unlikely to Decline] On June 11, spot prices of #1 copper cathode against the SHFE copper 2506 contract were quoted at a premium of 40-150 yuan/mt, with an average quoted premium of 95 yuan/mt, up 10 yuan/mt from the previous trading day. Looking ahead to today, the availability of standard-quality copper is not expected to ease in the latter half of the week. Currently, with copper prices at a high level, downstream buyers are generally driving down purchasing prices. However, as the delivery date approaches, suppliers are reluctant to sell below parity prices...

In the latter half of the week, the supply of standard-quality copper did not show signs of easing. Currently, with copper prices at a high level, downstream buyers are generally engaging in bargain down purchasing prices. However, as the delivery date approaches, suppliers are reluctant to sell below parity. It is reported that there will be concentrated arrivals of some Russian copper at the end of the week, and it is expected that downstream buyers will be willing to purchase at lower prices. According to SHFE data, the copper futures warrants decreased by 373 mt during the day, with the current total at 33,373 mt. Currently, the open interest of the SHFE copper 2506 contract stands at 27,115 lots.