Month-End Downstream Purchasing Interest Sluggish, Intraday Spot Premium Retreats After Rapid Rise [SMM South China Spot Copper]

SMM News, August 31:

Today, spot prices for #1 copper cathode in Guangdong against the front-month contract: high-quality copper was quoted at a premium of 260 yuan/mt, up 10 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 160 yuan/mt, up 40 yuan/mt from the previous trading day; and SX-EW copper was quoted at a premium of 100 yuan/mt, up 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 108,925 yuan/mt, down 300 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,815 yuan/mt, down 285 yuan/mt from the previous trading day.

Spot market: Guangdong inventory had declined for 10 consecutive trading days. Reduced arrivals were the main reason, and some smelters made export shipments. Copper prices and inventory both declined, and suppliers actively held prices firm and sold in early trading. Standard-quality copper was quoted at a premium of 230 yuan/mt, but downstream enterprises showed weak buying interest at month-end, so suppliers had to lower standard-quality copper offers to a premium of 160 yuan/mt to sell; however, transactions were still not satisfactory. Today, copper cathode buying sentiment in Guangdong was 2.52, down 0.17 from the previous trading day, and selling sentiment was 2.85, down 0.1 from the previous trading day (historical data can be queried in the database).

In summary, downstream enterprises showed weak buying interest at month-end, intraday premiums retreated after a rapid rise, and overall trading was lackluster.