SMM March 18 News:
Today, #1 copper cathode spot prices against the SHFE 2504 contract were quoted at parity to a premium of 50 yuan/mt, with an average premium of 25 yuan/mt, down 10 yuan/mt from the previous trading day. Standard-quality copper transaction prices ranged from 80,330-80,530 yuan/mt, while high-quality copper transaction prices ranged from 80,360-80,550 yuan/mt. The SHFE copper 2504 contract opened higher and moved sideways in the morning session, initially testing 80,500 yuan/mt before fluctuating below this level. The price spread between the SHFE copper 2504 and 2505 contracts narrowed rapidly from a contango of 120-150 yuan/mt to 70-100 yuan/mt.
After entering trading for the SHFE copper 2504 contract, suppliers quickly raised their offers. Early in the session, mainstream standard-quality copper was quoted at parity to a premium of 20 yuan/mt, while high-quality copper was quoted at a premium of 20-40 yuan/mt. Some low-priced cargoes were snapped up instantly, and market liquidity remained tight. During the main trading session, mainstream standard-quality copper was transacted at a premium of 10-30 yuan/mt, while high-quality copper was transacted at a premium of 30-50 yuan/mt. Hydro copper was scarce, with few offers heard. Some non-registered cargoes were frequently traded, with no significant price spread compared to mainstream standard-quality copper. By 11:00 a.m., market offers stabilized, and overall trading activity slowed.
After the delivery of the SHFE copper 2503 contract, the price spread between the 2504 and 2505 contracts continued to narrow throughout the day, with the near-far structure maintaining an inverted "V" shape. Suppliers held back cargoes more aggressively, and with nearly 5,000 mt of warrants registered yesterday, market liquidity tightened further. Spot prices are expected to hover at a slight premium tomorrow.
