Inventory and Price Spread Narrowing Boosts Premiums, Spot Premiums Edge Up Slightly [SMM South China Spot Copper]

Published: Mar 5, 2025 11:26

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SMM March 5 News:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 50 yuan/mt to a premium of 20 yuan/mt against the front-month contract, with an average price at a discount of 15 yuan/mt, up 5 yuan/mt from the previous trading day. Hydro copper was quoted at a discount of 120 yuan/mt to 100 yuan/mt, with an average price at a discount of 110 yuan/mt, up 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 76,825 yuan/mt, down 145 yuan/mt from the previous trading day, while the average price of hydro copper was 76,730 yuan/mt, down 110 yuan/mt from the previous trading day.

Spot market: Guangdong inventory declined for the second consecutive day, mainly due to reduced arrivals. Influenced by the inventory decline and the narrowing price spread between futures contracts, suppliers stood firm on quotes. However, downstream buyers were reluctant to accept high premiums, resulting in only a slight increase in premiums today. As of 11:00 am, high-quality copper was quoted at a premium of 20 yuan/mt, standard-quality copper at a discount of 50 yuan/mt, and hydro copper at a discount of 110 yuan/mt. Notably, the price spread between hydro copper and standard-quality copper narrowed due to limited hydro copper supply.

Overall, the narrowing of inventory and the price spread between futures contracts supported premiums, but downstream restocking demand remained moderate, leading to only a slight increase in spot premiums.

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