Inventory Stops Declining, Suppliers Actively Lower Prices to Sell, Spot Premiums Drop Significantly [SMM South China Spot Copper]

SMM March 24: Today, the spot prices of #1 copper cathode in Guangdong against the front-month contract were at a premium of 160-220 yuan/mt, with an average premium of 190 yuan/mt, down 35 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 80-100 yuan/mt, with an average discount of 90 yuan/mt, down 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 81,090 yuan/mt, down 695 yuan/mt from the previous trading day, while the average price of SX-EW copper was 81,055 yuan/mt, down 710 yuan/mt from the previous trading day. Spot market: After the weekend, inventories in Guangdong finally ended a 14-day decline and increased slightly. This was due to a larger price difference between north and south China last Friday, leading to more supplies from east China moving south over the weekend. With the increase in inventory, suppliers no longer stood firm on quotes but instead actively lowered prices to sell, causing premiums to drop significantly. By 11 am, high-quality copper was quoted at a premium of 220 yuan/mt, standard-quality copper at 160 yuan/mt, and SX-EW copper at a premium of 90 yuan/mt. Overall, with the end of the inventory decline, suppliers actively reduced prices, leading to a significant drop in spot premiums, and transactions were not as active as last Friday.