Shanghai Spot Copper Premiums Fall Under Pressure Amid Imported and Domestic Arrivals

The Shanghai spot copper premiums have continued to fall under pressure due to the arrival of imported and domestic copper. As of September 14, SMM's nationwide mainstream social inventory of copper cathode stood at 90,300 mt, up 5,200 mt WoW from Monday and up 2,800 mt from last Thursday, but down 63,900 mt YoY.

On the SHFE copper 2609 contract, which will enter its last trading day tomorrow, suppliers have begun quoting against the October contract during the day. Standard-quality copper was quoted at a premium of approximately 700 yuan/mt, but after adjusting for the price spread between futures contracts, quotes are expected to show a slight discount.

Looking ahead to tomorrow, some suppliers are expected to quote high premiums against the October contract. However, SMM consistently quotes against the front-month contract, so prices are expected to show a slight discount before being corrected on the following day.