Warehouse Inventory Rises for 15 Consecutive Days, Spot Premiums Remain at Low Levels [SMM South China Spot Copper]

SMM News, February 10:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 280 yuan/mt to parity against the front-month contract, with an average discount of 140 yuan/mt, down 5 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 350-310 yuan/mt, with an average discount of 330 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 76,865 yuan/mt, up 490 yuan/mt from the previous trading day, while the average price of hydro copper was 76,675 yuan/mt, up 485 yuan/mt from the previous trading day.

Spot market: After the weekend, Guangdong inventory continued to increase, marking 15 consecutive days of growth. Due to the significant spot discounts, smelters preferred to deliver for settlement, resulting in a higher volume of shipments to warehouses. With inventory at a high level, suppliers found it difficult to stand firm on quotes. Today's spot transaction prices fell by 10 yuan/mt compared to the previous trading day. As of 11:00 a.m., high-quality copper was quoted at parity, standard-quality copper at a discount of 280 yuan/mt, and hydro copper at a discount of 330 yuan/mt against the front-month contract. Attention should be paid to whether inventory will continue to increase significantly in the future.

Overall, warehouse inventory has risen for 15 consecutive days, spot premiums remain at low levels, and overall trading activity is weak.

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