Downstream demand is gradually shrinking, forcing suppliers to lower prices for sales. Overall trading is sluggish. [SMM South China Spot Copper]

SMM, January 16: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 100 yuan/mt to parity against the front-month contract, with an average discount of 50 yuan/mt, down by 75 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 180-140 yuan/mt, with an average discount of 160 yuan/mt, down by 80 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 75,885 yuan/mt, up by 445 yuan/mt from the previous trading day, while the average price of hydro copper was 75,775 yuan/mt, up by 440 yuan/mt. Spot market: Guangdong inventory increased for the fourth consecutive day, mainly due to higher arrivals and reduced outflows from warehouses. The inventory increase, combined with rising copper prices and downstream enterprises gradually starting their holidays, forced suppliers to continuously lower premiums to facilitate sales. The quotation for standard-quality copper dropped from an initial premium of 80 yuan/mt to a discount of 100 yuan/mt. However, even with these adjustments, market transactions remained sluggish, with only sporadic deals. As of 11:00 a.m., the front-month contract quotations were as follows: high-quality copper at parity, standard-quality copper at a discount of 100 yuan/mt, and hydro copper at a discount of 160 yuan/mt. Overall, downstream demand continued to shrink, forcing suppliers to cut prices for sales, resulting in weak overall trading activity.