Copper Prices Consolidate on Subdued Note Amid Tight Market Conditions

Copper prices have been consolidating on a subdued note in the short term after a holiday in the LME. According to SMM's Copper Morning Briefing, the most-traded SHFE copper 2610 contract opened at 109,100 yuan/mt and shot up to a high of 109,980 yuan/mt before drifting lower to close at 109,350 yuan/mt, up 0.62%. Trading volume reached 46,500 lots, and open interest reached 223,000 lots, an increase of 2,121 lots from the previous trading day.

The data released by Azerbaijan's State Customs Committee showed that from January to July this year, Azerbaijan exported more than 69,117 mt of copper ores and concentrates, worth nearly $153 million. Compared with the same period last year, export value increased by more than $136 million (up 9.5x), and exports increased by 59,051 mt (up 6.8x).

In the spot market, Shanghai #1 copper cathode spot prices against the SHFE copper 2609 contract were quoted at premiums of 550-670 yuan/mt, with an average of 610 yuan/mt, up 75 yuan/mt from the previous trading day. In Guangdong, the average price of Guangdong #1 copper cathode was 108,925 yuan/mt, down 300 yuan/mt from the previous trading day.

The overall pattern in the market is tight, with available cargoes remaining scarce and suppliers holding prices firm. Demand side, purchases were mainly just-in-time procurement, with limited willingness to chase higher prices, but month-start restocking expectations partially underpinned demand.