Inventory Pulled Back Significantly for Two Consecutive Days as Suppliers Actively Stood Firm on Quotes to Sell [SMM South China Spot Copper]

SMM, January 6:

Today, spot #1 copper cathode in Guangdong was quoted at a premium of 160-220 yuan/mt against the front-month contract, with an average premium of 190 yuan/mt, up 20 yuan/mt from the previous trading day. Hydro copper was quoted at a premium of 80-120 yuan/mt, with an average premium of 100 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 74,015 yuan/mt, up 765 yuan/mt from the previous trading day, while the average price of hydro copper was 73,925 yuan/mt, up 755 yuan/mt from the previous trading day.

Spot market: After the weekend, Guangdong inventory continued to decline, mainly due to reduced arrivals and increased outflows from warehouses. As a result, suppliers actively stood firm on quotes, pushing premiums higher step by step, leaving downstream buyers helpless as they had to accept high premiums due to limited inventory. As of 11:00 am, the front-month contract quotes were as follows: high-quality copper at 220 yuan/mt, standard-quality copper at 160 yuan/mt, and hydro copper at a premium of 100 yuan/mt. Looking ahead, we will continue to monitor the arrival situation, and it is expected that arrivals will remain limited in the near future.

Overall, inventory has significantly pulled back for two consecutive days, and suppliers actively stood firm on quotes, driving premiums higher.

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