Pre-Holiday Restocking Enthusiasm Was Low, Destocking Slowed Down This Week, Focus on Post-Holiday Arrivals [SMM South China Copper Cathode Spot Copper Weekly Review]

SMM April 30 update:

Guangdong region: Premiums in this region trended higher with fluctuations this week, mainly due to fluctuating inventory declines combined with suppliers insisting on high-premium shipments. As of Thursday, high-quality copper was quoted at 320 yuan/mt, up 30 yuan/mt WoW; standard-quality copper was quoted at a premium of 240 yuan/mt, up 30 yuan/mt WoW; SX-EW copper was quoted at 180 yuan/mt, up 30 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong showed Guangdong higher by 210 yuan/mt. Given the large price spread, cross-regional transfers occurred this week, with some northern sources moving south early in the week, though the total volume was not large. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 13,700 mt, down 1,300 mt WoW, with the decline showing a slowdown. Warrants totaled 5,200 mt, down 302 mt WoW. Specifically: warehouse arrivals this week were 12,100 mt/week, up 4,600 mt/week WoW, well below the annual average (14,000 mt/week), mainly due to increased northern sources. Warehouse withdrawals were 13,400 mt/week, down 2,400 mt/week WoW, slightly below the annual average (14,200 mt/week), as many copper processing enterprises planned 3-4 days off during the Labour Day holiday, leading to reduced pre-holiday restocking.

Looking ahead to next week, as downstream factories will be on extended holidays during Labour Day, suppliers are expected to prioritize sending cargo to warehouses. Warehouse inventory is expected to increase after the holiday, and spot premiums are unlikely to rise.

(The above information is derived from market research and comprehensive assessment by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct investment research advice. Clients should make prudent decisions and not replace independent judgment with this information. Any decisions made by clients are unrelated to SMM.)