Large Outflows of Warehouse Warrants Limit the Rise in Premiums; Spot Premiums Remain at Yesterday's Level [SMM South China Spot Copper]

SMM March 3 News:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 60 yuan/mt to a premium of 20 yuan/mt against the front-month contract, with the average price at a discount of 20 yuan/mt, flat from the previous trading day. Hydro copper was quoted at a discount of 160 yuan/mt to 140 yuan/mt, with the average price at a discount of 150 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 76,970 yuan/mt, down 100 yuan/mt from the previous trading day, while the average price of hydro copper was 76,840 yuan/mt, down 90 yuan/mt from the previous trading day.

Spot market: Today, Guangdong inventory declined again, mainly due to reduced arrivals and increased outflows from warehouses. Although inventory decreased, the total inventory remained high, and a large number of warehouse warrants continued to flow into the market, limiting the increase in spot premiums, which could only maintain the level of the previous day. As of 11:00 am, high-quality copper was quoted at a premium of 20 yuan/mt against the front-month contract, standard-quality copper at a discount of 60 yuan/mt, and hydro copper at a discount of 150 yuan/mt. Currently, the warehouse warrant volume in Guangdong stands at 47,900 mt, down by only 926 mt from the previous day.

Overall, the large outflow of warehouse warrants restricted the rise in premiums, and spot premiums only maintained the level of the previous day.

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