SMM March 17 News:
Today, spot #1 copper cathode was quoted at a discount of 10 yuan/mt to a premium of 80 yuan/mt against the front-month 2503 contract, with an average premium of 35 yuan/mt, up 15 yuan/mt from the previous trading day. Standard-quality copper traded at 79,840-80,040 yuan/mt, while high-quality copper traded at 79,870-80,070 yuan/mt. The SHFE copper 2503 contract fluctuated rangebound near the 80,000 yuan/mt mark during the morning session. The SHFE copper 2504 contract initially dipped and then rebounded, testing 79,750 yuan/mt before climbing back above 80,000 yuan/mt. The price spread between the SHFE copper 2503 and 2504 contracts fluctuated at Contango 90-30 yuan/mt in the morning session.
Today marked the last trading day for the SHFE copper 2503 contract, and market activity significantly improved compared to last Friday. As the price spread narrowed, downstream buyers showed increased interest in pricing. At the beginning of the session, suppliers quoted mainstream standard-quality copper at a discount of 40 yuan/mt to 10 yuan/mt against the 2504 contract, while high-quality copper, such as Jinchuan (plate), was quoted at parity to a premium of 30 yuan/mt. At this time, the price spread between the 2503 and 2504 contracts fluctuated around Contango 90-Contango 20 yuan/mt. Standard-quality copper against the SHFE copper 2502 contract was quoted at a discount of 20 yuan/mt to a premium of 80 yuan/mt, while high-quality copper was quoted at a premium of 10 yuan/mt to 100 yuan/mt.
During the mainstream trading session, the price spread between the 2503 and 2504 contracts narrowed to Contango 50-Contango 10 yuan/mt. Market activity improved, with buyers showing increased interest in pricing, while suppliers raised premiums to sell. Mainstream standard-quality copper against the 2504 contract was quoted at a discount of 20 yuan/mt to parity, with some transactions completed. High-quality copper, such as Jinchuan (plate), was quoted at a premium of 10 yuan/mt to 40 yuan/mt against the 2504 contract, with some transactions completed. At this time, the price spread between the 2503 and 2504 contracts remained relatively small. Standard-quality copper against the SHFE copper 2503 contract was quoted at a discount of 10 yuan/mt to a premium of 50 yuan/mt, while high-quality copper was quoted at a premium of 20 yuan/mt to 80 yuan/mt. According to SMM's price assessment methodology for #1 copper cathode, SMM consistently quotes based on the front-month contract.
According to SMM, domestic social inventory continued to decline by approximately 6,500 mt over the past weekend. In late March, the arrival of imported copper is expected to remain limited, and smelter shipments to the east China region are constrained. It is anticipated that after transitioning to trading against the SHFE copper 2504 contract, spot suppliers will initially test the market with small discounts, and spot discounts are expected to gradually narrow, approaching parity.
