Market Activity Increased After the Contract Rollover, Spot Premiums Continued to Rise [SMM South China Spot Copper]

SMM News, April 1:

Today in Guangdong, spot premiums for #1 copper cathode against the front-month contract were quoted at 170 yuan/mt for high-quality copper, up 30 yuan/mt from the previous trading day; 80 yuan/mt for standard-quality copper, up 30 yuan/mt from yesterday; and 20 yuan/mt for SX-EW copper, up 30 yuan/mt from yesterday. The average price of #1 copper cathode in Guangdong was 97,025 yuan/mt, up 1,245 yuan/mt from the previous trading day, while the average price of SX-EW copper was 96,920 yuan/mt, also up 1,245 yuan/mt from the previous trading day.

Spot market: Guangdong inventory continued to decline and has now fallen for 12 consecutive sessions, with further downside room expected in the future market. Although copper prices rose sharply, procurement volume from traders and downstream end-users increased from yesterday after the contract rollover. Suppliers held prices firm accordingly, driving spot premiums higher across the board, and overall trading was slightly better than yesterday. Today, procurement sentiment for copper cathode in Guangdong was 2.49, up 0.11 from the previous trading day, while shipments sentiment was 3.61, up 0.18 from the previous trading day (historical data is available in the database).

Overall, market activity increased after the contract rollover, and spot premiums continued to rise, with further upside room likely in the future market.