The price spread between futures contracts was wide, and spot trades were sluggish near delivery [SMM South China Copper Spot]

SMM August 14:

Today, Guangdong #1 copper cathode spot prices against the front-month contract were as follows: high-quality copper was quoted at a discount of 20 yuan/mt, unchanged from the previous trading day; standard-quality copper was quoted at a discount of 100 yuan/mt, up 20 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 200 yuan/mt, unchanged from the previous trading day. The average price of Guangdong #1 copper cathode was 108,295 yuan/mt, up 45 yuan/mt from the previous trading day, while the average SX-EW copper price was 108,155 yuan/mt, up 55 yuan/mt from the previous trading day.

Spot Market: Guangdong inventory increased significantly as arrivals rose and consumption weakened. Today, the price spread between futures contracts remained very wide, reaching over 700 yuan/mt, and with contract rollover approaching, downstream users were cautious in buying; consumption was weak and actual transactions were sparse. Today, Guangdong copper cathode purchase sentiment stood at 2.18, down 0.03 from the previous trading day, while selling sentiment stood at 2.85, down 0.18 from the previous trading day (historical data can be queried by logging into the database).

Overall, the price spread between futures contracts was wide and spot trades were sluggish as delivery approached; conditions are not expected to improve notably until next Tuesday.