Inventory declined for 8 consecutive days to a new low this year, spot premiums surged, but actual transactions were mediocre [SMM South China spot copper]

SMM, June 11:

In Guangdong today, spot #1 copper cathode prices against the front-month contract were as follows: high-quality copper was quoted at a premium of 240 yuan/mt, up 80 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 180 yuan/mt, up 50 yuan/mt from the previous trading day; and SX-EW copper was quoted at a premium of 120 yuan/mt, up 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 103,625 yuan/mt, down 585 yuan/mt from the previous trading day, and the average price of SX-EW copper was 103,550 yuan/mt, down 585 yuan/mt from the previous trading day.

Spot market: Guangdong inventory continued to decline today, marking an eighth consecutive day of declines, with arrivals remaining relatively low. As both copper prices and inventory fell, suppliers sharply held prices firm when selling, leading to a notable rise in premiums. Downstream users, faced with tight supply, were forced to accept higher premiums, and overall trading activity was moderate. The purchase sentiment for copper cathode in Guangdong today stood at 2.3, up 0.36 from the previous trading day, while the shipment sentiment stood at 2.84, down 0.27 from the previous trading day (historical data can be accessed via the database).

Overall, inventory fell for an eighth consecutive day to a new low for the year, and spot premiums rose sharply, but actual transactions were moderate.