Copper Prices Skyrocket on Delivery Date Amid Market Disarray
Copper prices surged on their delivery date in China, reaching 109,900 yuan/mt at 11:30 today. This represents a significant increase of 1,650 yuan/mt from the previous trading day.
The average spot premiums also rose to 80 yuan/mt, up 210 yuan/mt from the previous month. Copper scrap prices saw an even more substantial rise of 600 yuan/mt compared to last month's prices.
According to SMM's survey, the intraday delivery of futures contracts and a sharp rise in copper prices created confusion in the market. Scrap utilization enterprises were hesitant to follow the rally and maintained a low-price procurement strategy, while suppliers of copper scrap were optimistic about further price increases and showed little willingness to sell.
As a result, overall intraday transactions were relatively weak. The price difference between copper cathode and copper scrap widened to 5,533 yuan/mt, up 972 yuan/mt from the previous month.