Downstream Demand Plummets Due to Holidays; Suppliers Continue to Cut Prices to Facilitate Sales [SMM South China Spot Copper]

SMM, January 23:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 350 yuan/mt to parity against the front-month contract, with an average discount of 175 yuan/mt, down 25 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 450-410 yuan/mt, with an average discount of 430 yuan/mt, down 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 74,845 yuan/mt, down 505 yuan/mt from the previous trading day, while the average price of hydro copper was 74,590 yuan/mt, down 530 yuan/mt.

Spot market: Guangdong inventory has risen for nine consecutive days, mainly due to weak consumption. It is reported that most downstream enterprises will start their holiday from this Saturday, leading to extremely low purchase willingness and making it difficult for suppliers to sell. To secure transactions, suppliers had to significantly lower premiums. As of 11:00 am, high-quality copper was quoted at parity against the front-month contract, standard-quality copper at a discount of 350 yuan/mt, and hydro copper at a discount of 430 yuan/mt. Due to the limited supply of high-quality copper, its quotes remained firm.

Overall, downstream demand sharply declined as the holiday approached, and suppliers continued to lower prices to facilitate sales.

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