Inventory Dropped to Historical Lows, Spot Premiums Surged Significantly, Yet Spot Copper Remains Hard to Find [SMM South China Spot Copper]

SMM, January 7:

Today, spot premiums for Guangdong #1 copper cathode against the front-month contract were quoted at 300-360 yuan/mt, with an average premium of 330 yuan/mt, up 140 yuan/mt from the previous trading day. Hydro copper premiums were quoted at 240-260 yuan/mt, with an average premium of 250 yuan/mt, up 150 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 74,665 yuan/mt, up 650 yuan/mt from the previous trading day, while the average price of hydro copper was 74,585 yuan/mt, up 660 yuan/mt from the previous trading day.

Spot market: Guangdong inventory has significantly declined for three consecutive days, mainly due to limited arrivals. As inventory has already reached a historical low, spot premiums continued to rise despite the increase in copper prices. In the early session, standard-quality copper was quoted at 200 yuan/mt, but it was quickly sold out, pushing premiums up to 300 yuan/mt. Even at this level, supply remained tight. By 11 a.m., premiums for high-quality copper against the front-month contract were quoted at 360 yuan/mt, standard-quality copper at 320 yuan/mt, and hydro copper at 260 yuan/mt. Moving forward, attention will remain on arrival volumes, which are expected to remain limited.

Overall, inventory has fallen to historical lows, spot premiums have risen sharply, but supply remains scarce.

》Subscribe to view historical SMM metal spot prices