[SMM North China Copper Cathode Spot Market] The continuous sharp rise in copper prices suppressed copper cathode consumption. New orders from downstream buyers in the northern market slowed down significantly, and spot copper cathode premiums came under pressure.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, copper prices continue to fluctuate at highs, and downstream purchasing sentiment remains subdued. Both buying and selling sentiment pulled back during the day, with spot discounts continuing to widen. According to SMM, downstream orders continued to decline from the previous day, with procurement driven mainly by rigid demand and limited willingness to chase higher prices. In terms of market structure, the inter-month Contango price spread between futures contracts remained in the range of 90-20 yuan/mt. As the 05 contract delivery date approaches, suppliers are increasingly willing to ship to delivery warehouse, and the delivery logic is expected to provide bottom support for spot discounts, limiting further significant downside. Overall, Shanghai spot copper prices against the SHFE copper 2605 contract are expected to remain at a discount tomorrow, with a generally weak tone but limited downside room.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, Peru's energy crisis has raised market concerns over copper ore supply. Copper prices surged significantly during the night session, and end-users' acceptance of the current high copper prices and spot discounts has declined. According to SMM, downstream orders dropped sharply during the day, with purchasing sentiment subdued and dominated by rigid demand. In terms of market performance, suppliers continuously lowered their offers, and spot cargo has shifted from premiums to discounts, with the discount margin widening. However, Friday marks the last trading day of the SHFE copper 2605 contract. As delivery approaches, spot discounts are widening under the Contango price spread structure, and suppliers' willingness to ship to delivery warehouses is increasing. The delivery logic is expected to provide bottom support for spot discounts, limiting further downside room.

Today, #1 copper cathode spot prices in North China against the front-month contract were reported at an average discount of 250 yuan/mt to a discount of 130 yuan/mt, with the average discount of 190 yuan/mt down 10 yuan/mt from the previous trading day. The average transaction price was 106,535 yuan/mt, up 2,450 yuan/mt from the previous trading day.

SMM May 12 News: Guangdong #1 copper cathode spot prices against the front-month contract today: high-quality copper was quoted at a premium of 260 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 190 yuan/mt, down 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 120 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 104,355 yuan/mt, up 1,385 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,325 yuan/mt, up 1,395 yuan/mt from the previous trading day. Spot market: Guangdong inventory increased again today, mainly driven by increased arrivals and weak consumption. Copper prices hit a recent high, dampening downstream restocking enthusiasm, but suppliers were unwilling to lower prices for shipments. The divergence between the two sides was significant, and the overall trading sentiment was poor. The purchasing sentiment for copper cathode in Guangdong today was 2.21, down 0.1 from the previous trading day, and the shipment sentiment was 2.9, down 0.2 from the previous trading day (historical data can be accessed via the database). Overall, copper prices hit new highs and downstream buyers were reluctant to restock, resulting in poor overall trading activity.

SMM Morning Meeting Summary: Overnight, LME copper opened at and dipped below $13,693.5/mt, moved sideways at the beginning of the session, then the copper price center fluctuated upward and probed up to $13,969/mt near the end of the session, before fluctuating downward to finally close at $13,920/mt, up 2.84%, with trading volume at 26,800 lots and open interest at 272,000 lots, an increase of 1,201 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2606 contract opened at 105,500 yuan/mt, dipped to 105,390 yuan/mt at the beginning of the session, then the copper price center gradually shifted upward and touched a high of 107,350 yuan/mt near the end of the session, before fluctuating downward to finally close at 106,770 yuan/mt, up 2.35%, with trading volume at 75,900 lots and open interest at 209,000 lots, an increase of 4,829 lots from the previous trading day, indicating bulls adding positions.

Today, #1 copper cathode spot prices in North China against the front-month contract were reported at an average discount of 240 yuan/mt to a discount of 120 yuan/mt, with the average discount of 180 yuan/mt down 20 yuan/mt from the previous trading day. The average transaction price was 104,085 yuan/mt, up 1,545 yuan/mt from the previous trading day.

SMM May 11 News: Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 260 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 190 yuan/mt, down 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 120 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 104,355 yuan/mt, up 1,385 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,325 yuan/mt, up 1,395 yuan/mt from the previous trading day. Spot market: Upon return from the weekend, Guangdong inventory continued to decline, mainly due to fewer arrivals and increased shipments. Although inventory decreased slightly, downstream restocking enthusiasm was poor after copper prices surged significantly, and suppliers had to lower premiums to facilitate shipments. Even so, market trading remained sluggish, with overall transactions being lackluster. Guangdong copper cathode procurement sentiment was 2.31, down 0.14 from the previous trading day, and shipment sentiment was 3.1, down 0.1 from the previous trading day (historical data can be accessed via the database). Overall, copper prices surged sharply while consumption remained weak. Suppliers proactively lowered prices to facilitate shipments, and overall trading was lackluster.

SMM Morning Meeting Summary: Last Friday evening, LME copper opened at $13,522.5/mt, fluctuated downward to $13,484.5/mt in early trading, then experienced wild swings reaching a high of $13,583/mt, before fluctuating downward to finally close at $13,535.5/mt, up 1.59%, with trading volume at 29,500 lots and open interest at 271,000 lots, down 1,154 lots from the previous trading day, indicating bears cutting positions. Last Friday evening, the most-traded SHFE copper 2606 contract opened at 104,500 yuan/mt, rose to 104,580 yuan/mt in early trading, then fluctuated downward to 103,690 yuan/mt, moved sideways near the end of the session to finally close at 104,200 yuan/mt, up 0.53%, with trading volume at 50,000 lots and open interest at 208,000 lots, down 1,584 lots from the previous trading day, indicating bears cutting positions.

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