Post-Holiday Inventory Surges; Suppliers Forced to Cut Prices to Facilitate Sales [SMM South China Spot Copper]

SMM, February 5: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 370 yuan/mt to parity against the front-month contract, with an average discount of 185 yuan/mt, down 55 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 400-360 yuan/mt, with an average discount of 380 yuan/mt, down 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 75,110 yuan/mt, up 20 yuan/mt from the previous trading day, while the average price of hydro copper was 74,915 yuan/mt, up 35 yuan/mt from the previous trading day. Spot market: After the Chinese New Year, Guangdong inventory surged by 23,400 mt to 48,900 mt, with the inventory buildup exceeding expectations. In addition, the current delivery warehouse capacity has reached zero, making it difficult for suppliers to deliver. To facilitate sales, suppliers had to significantly lower prices, leading to a sharp decline in premiums for standard-quality copper. High-quality copper prices remained firm due to limited supply, while hydro copper also saw tight supply, resulting in a relatively small price difference with standard-quality copper. As of 11:00 am, high-quality copper against the front-month contract was quoted at parity, standard-quality copper at a discount of 370 yuan/mt, and hydro copper at a discount of 380 yuan/mt. Overall, post-holiday inventory increased significantly, forcing suppliers to lower prices to promote sales, while overall market activity remained sluggish. 》Subscribe to view historical SMM metal spot prices.