SMM Feb. 6:
Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 110-0 yuan/mt, with the average discount at 55 yuan/mt, up 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 190-150 yuan/mt, with the average discount at 170 yuan/mt, up 60 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 98,950 yuan/mt, down 2,615 yuan/mt from the previous trading day, while the average price of SX-EW copper was 98,835 yuan/mt, down 2,585 yuan/mt from the previous trading day.
Spot market: Guangdong inventory edged down today, mainly due to increased shipments. As copper prices continued to decline, downstream users continued to restock at low prices. In addition, the price spread between futures contracts remained wide, prompting suppliers to actively purchase. Suppliers held prices firm to ship goods, pushing spot premiums higher. Today, purchasing sentiment for copper cathode in Guangdong was 2.68, up 0.14 from the previous trading day, while selling sentiment was 2.73, down 0.08 from the previous trading day (historical data available in the database). As of 11:00, high-quality copper against the front-month contract was quoted at parity, standard-quality copper at a discount of 110 yuan/mt, and SX-EW copper at a discount of 170 yuan/mt.
Overall, as copper prices continued to decline, market trading improved, and spot premiums rose for the fourth consecutive day.
