Concentrated arrivals of northern supplies led to an increase in inventory, and spot premiums weakened. [SMM South China Spot Copper Cathode Weekly Review]

SMM March 27 News: Guangdong Region: This week, premiums and discounts in the region fluctuated downward, mainly influenced by rising copper prices and increased inventory. As of Thursday, high-quality copper was quoted at a premium of 120 yuan/mt, down 90 yuan/mt WoW, standard-quality copper at a premium of 60 yuan/mt, down 100 yuan/mt WoW, and SX-EW copper at parity, down 90 yuan/mt WoW. On Thursday, the price spread for standard-quality copper premiums and discounts between Shanghai and Guangdong was 120 yuan/mt higher in Guangdong, with a narrow spread leaving no room for inter-regional transfers. According to SMM statistics, as of Thursday, the total inventory in Guangdong warehouses was 43,200 mt, a slight increase of 370 mt WoW, with warrants totaling 28,100 mt, down 3,900 mt WoW. Specifically, warehouse arrivals this week increased significantly to 12,100 mt/week, up 8,100 mt/week WoW, slightly below the annual average (14,000 mt/week). The larger Shanghai-Guangdong price spread at the beginning of the week led to some northern supplies moving south to Guangdong, which was the main reason for the significant increase in arrivals this week. Outflows from warehouses were 11,600 mt/week, down 3,000 mt/week WoW, below the annual average (14,200 mt/week). The continuous sharp rise in copper prices this week reduced orders from downstream enterprises. Looking ahead to next week, due to maintenance at surrounding smelters and fewer arrivals of imported copper, supply is expected to decrease compared to this week. In terms of downstream consumption, as the Qingming holiday approaches, downstream enterprises are expected to replenish stocks in advance, leading to an anticipated increase in demand next week. Therefore, we believe that next week will see a situation of reduced supply and increased demand, leading to a continued decline in weekly inventory, with spot premiums expected to rise again. Order to view SMM metal spot historical prices.