Spot Copper Supply at Low Prices Decreases as Suppliers Stand Firm on Quotes to Sell [SMM South China Spot Copper]

SMM News, February 12:

Today, spot premiums for #1 copper cathode in Guangdong against the front-month contract were quoted at a discount of 90 yuan/mt to a premium of 30 yuan/mt, with an average of a 30 yuan/mt discount, up by 85 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 160-120 yuan/mt, with an average discount of 140 yuan/mt, up by 140 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 76,585 yuan/mt, down by 360 yuan/mt from the previous trading day, while the average price of hydro copper was 76,475 yuan/mt, down by 305 yuan/mt from the previous trading day.

Spot market: After a slight decline in Guangdong inventory yesterday, it significantly increased again today, mainly due to higher arrivals. Although inventory rose again today, copper prices fell, and low-priced copper supply decreased. Coupled with increased demand from downstream users resuming production, spot premiums continued to rise. As of 11:00 a.m., premiums for high-quality copper against the front-month contract were quoted at 30 yuan/mt, standard-quality copper at a discount of 70 yuan/mt, and hydro copper at a discount of 130 yuan/mt. Future trends will continue to focus on the extent of inventory buildup. If inventory does not increase significantly after delivery, spot premiums are expected to rise further.

Overall, the supply of low-priced copper decreased, suppliers stood firm on quotes, and spot premiums rose significantly.

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