Inventory Decline Failed to Boost Copper Prices, Overall Trading Remained Weak [SMM South China Spot Copper]

SMM April 20 update:

Guangdong #1 copper cathode spot prices against the front-month contract today: 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 170 yuan/mt, unchanged from the previous trading day; SX-EW copper was quoted at a premium of 110 yuan/mt, unchanged from the previous trading day. The average price of Guangdong #1 copper cathode was 102,880 yuan/mt, up 840 yuan/mt from the previous trading day, and the average price of SX-EW copper was 102,775 yuan/mt, up 835 yuan/mt from the previous trading day.

Spot market: Returning from the weekend, Guangdong inventory continued to decline sharply and had now fallen for 24 consecutive trading days, mainly due to low arrivals. Despite the significant inventory drawdown, rising copper prices dampened downstream restocking enthusiasm, and suppliers could only maintain last Friday's prices, unable to hold prices firm further. Guangdong copper cathode purchasing sentiment today was 2.31, down 0.05 from the previous trading day, and shipments sentiment was 3.6, down 0.03 from the previous trading day (historical data available via the SMM database).

Overall, the sharp inventory decline failed to offset rising copper prices. Premiums today remained flat compared with last Friday, and overall trading activity was weak.