Suppliers Anticipate a Bullish Market with Rising Premiums, but Actual Transactions on the Contract Rollover Day Remain Moderate [SMM South China Spot Copper]

SMM March 17 News:

Today, spot #1 copper cathode in Guangdong was quoted at a premium of 90-110 yuan/mt against the front-month contract, with the average premium at 100 yuan/mt, up 30 yuan/mt from the previous trading day. Hydro copper was quoted at a premium of 10-30 yuan/mt, with the average premium at 20 yuan/mt, up 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 79,995 yuan/mt, up 50 yuan/mt from the previous trading day, while the average price of hydro copper was 79,915 yuan/mt, up 60 yuan/mt from the previous trading day.

Spot market: Guangdong inventory has declined for 10 consecutive days, mainly due to reduced arrivals. On the contract rollover day, downstream restocking demand was not strong, but suppliers generally held a bullish outlook and stood firm on quotes, forcing downstream buyers to accept high premiums. As of 11:00 am, high-quality copper against the front-month contract was quoted at a premium of 110 yuan/mt, standard-quality copper at a premium of 90 yuan/mt, and hydro copper at a discount of 20 yuan/mt. The transaction price of standard-quality copper against the next-month contract was at a premium of 30 yuan/mt. Attention is focused on how many warrants will flow out after delivery.

Overall, suppliers were bullish on the market, pushing premiums higher, but actual transactions on the contract rollover day were moderate.

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