Copper Prices Hit New Highs as Downstream Buyers Reluctant to Restock, Overall Trading Remains Poor [SMM South China Spot Copper]

SMM May 12 News:

Guangdong #1 copper cathode spot prices against the front-month contract today: high-quality copper was quoted at a premium of 260 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 190 yuan/mt, down 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 120 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 104,355 yuan/mt, up 1,385 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,325 yuan/mt, up 1,395 yuan/mt from the previous trading day.

Spot market: Guangdong inventory increased again today, mainly driven by increased arrivals and weak consumption. Copper prices hit a recent high, dampening downstream restocking enthusiasm, but suppliers were unwilling to lower prices for shipments. The divergence between the two sides was significant, and the overall trading sentiment was poor. The purchasing sentiment for copper cathode in Guangdong today was 2.21, down 0.1 from the previous trading day, and the shipment sentiment was 2.9, down 0.2 from the previous trading day (historical data can be accessed via the database).

Overall, copper prices hit new highs and downstream buyers were reluctant to restock, resulting in poor overall trading activity.