Inventory Declines for Three Consecutive Days, Spot Premiums Rise, Overall Trading Remains Moderate [SMM South China Spot Copper]

SMM, February 21: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 110-20 yuan/mt against the front-month contract, with an average discount of 65 yuan/mt, up 20 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 250-210 yuan/mt, with an average discount of 230 yuan/mt, flat compared to the previous trading day. The average price of #1 copper cathode in Guangdong was 77,360 yuan/mt, up 255 yuan/mt from the previous trading day, while the average price of hydro copper was 77,195 yuan/mt, up 235 yuan/mt from the previous trading day. Spot market: Today, Guangdong inventory declined for the third consecutive day, mainly due to reduced arrivals and increased shipments. Benefiting from the continuous inventory decline, suppliers continued to stand firm on quotes, but the large outflow of warehouse warrants limited the increase in premiums. As of 11:00 am, the front-month contract saw high-quality copper quoted at a discount of 20 yuan/mt, standard-quality copper at a discount of 110 yuan/mt, and hydro copper at a discount of 230 yuan/mt. Due to the relatively large supply of high-quality copper and the still abundant supply of hydro copper, the price spread between hydro copper and standard-quality copper remained significant. Overall, with inventory declining for three consecutive days and spot premiums rising, overall trading was moderate. Attention should be paid to whether inventory will continue to decline in the future.