Inventory at Historical Lows as Suppliers Stand Firm on Quotes; Spot Premiums Surge Significantly [SMM South China Spot Copper]

SMM, December 26:

    Today, spot premiums for Guangdong #1 copper cathode against the front-month contract were quoted at 300-350 yuan/mt, with an average premium of 325 yuan/mt, up 55 yuan/mt from the previous trading day. Hydro copper premiums were quoted at 210-270 yuan/mt, with an average premium of 240 yuan/mt, up 45 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 74,530 yuan/mt, up 160 yuan/mt from the previous trading day, while the average price of hydro copper was 74,445 yuan/mt, up 150 yuan/mt from the previous trading day.

    Spot market: Guangdong inventory saw a slight increase today but remained at historically low levels. As a result, suppliers stood firm on quotes, pushing spot premiums for standard-quality copper close to 300 yuan/mt. However, downstream buyers were generally reluctant to purchase at high premiums, leading to sluggish spot trades. As of 11:00 am, premiums for high-quality copper were quoted at 350 yuan/mt, standard-quality copper at 300 yuan/mt, and hydro copper at 240 yuan/mt. However, according to our information, many copper rod enterprises plan to implement production cuts over the weekend, which is expected to increase inventory and pull back premiums.

    Overall, with inventory at historically low levels, suppliers stood firm on quotes, resulting in a significant rise in spot premiums.

》Subscribe to view SMM historical spot metal prices