Spot Trading Was Quiet on Substantial Output Reduction and Inventory Surge at Downstream Producers  

SHANGHAI, Feb 27 (SMM) – Spot quotes in Guangdong bottomed out before rallying last week. Spot quotes fell at the beginning of the week amid poor consumption and a large increase in inventory. In the middle of the week, traders began to replenish goods at low prices. Sellers raised their quotes on Friday when copper prices tumbled. As of last Friday, high-quality copper was quoted with discounts of 30 yuan/mt, up 30 yuan/mt from a week earlier, and standard-quality copper was quoted with discounts of 90 yuan/mt, flat from a week earlier. Hydro-copper was quoted with discounts of 150 yuan/mt, up 10 yuan/mt.

Last Friday, the prices in Guangdong exceeded those in Shanghai by 40 yuan/mt, with the price spread narrowing 60 yuan/mt from a week earlier. As of Friday, total inventories in Guangdong stood at 65,600 mt, a growth of 6,800 mt from a week earlier.