Inventory and Copper Prices Both Declined, but Large Traders' Active Price Cuts Led to Further Drops in Premiums [SMM South China Spot Copper]

SMM, December 18:

    Today, spot #1 copper cathode in Guangdong was quoted at a premium of 120-170 yuan/mt against the front-month contract, with an average premium of 145 yuan/mt, down 20 yuan/mt from the previous trading day. Hydro copper was quoted at a premium of 40-100 yuan/mt, with an average premium of 70 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 74,305 yuan/mt, down 475 yuan/mt from the previous trading day, while the average price of hydro copper was 74,230 yuan/mt, down 465 yuan/mt from the previous trading day.

    Spot market: Guangdong inventory has declined for two consecutive days, mainly due to limited arrivals. Although both inventory and copper prices fell, some suppliers, under cash flow pressure, actively lowered prices to sell, causing the premium for standard-quality copper to drop. In contrast, non-standard copper has gained popularity recently, narrowing its price spread with standard-quality copper. As of 11:00 am, high-quality copper against the front-month contract was quoted at a premium of 170 yuan/mt, standard-quality copper at 120 yuan/mt, and hydro copper at a premium of 70 yuan/mt. Moving forward, attention will focus on whether inventory continues to decline.

    Overall, both inventory and copper prices fell, but active price reductions by major suppliers led to a further decline in premiums.

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