Reduced Supply and Active Price Stance by Suppliers Stimulate Significant Premium Increase [SMM South China Spot Copper]

SMM March 20 Report: Spot prices of #1 copper cathode in Guangdong against the front-month contract were reported at 160-210 yuan/mt premium, with an average of 185 yuan/mt, up 55 yuan/mt from the previous trading day; SX-EW copper was quoted at 80-100 yuan/mt premium, averaging 90 yuan/mt, up 70 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 81,605 yuan/mt, up 1,030 yuan/mt from the previous trading day, while the average price of SX-EW copper was 81,510 yuan/mt, up 1,045 yuan/mt. Spot market: Inventory in Guangdong has been declining for 13 consecutive days, now down by 32,500 mt from the highest level this year. This boosted suppliers' confidence, leading to firm quotes. In the morning, standard-quality copper surged to a 200 yuan/mt premium. However, due to the excessive increase and a significant rise in copper prices, downstream buyers did not accept the high premiums, forcing suppliers to lower their premiums. By 11 am, high-quality copper was quoted at 210 yuan/mt, standard-quality copper at 160 yuan/mt premium, and SX-EW copper at 90 yuan/mt premium. Overall, spot trades today were not as active as yesterday. In summary, reduced supply and suppliers' firm quotes stimulated a significant rise in premiums, but overall trading activity was poor.