Although copper prices fell, downstream buyers were still reluctant to restock, forcing suppliers to lower premiums for spot copper shipments. [SMM South China Spot Copper]

SMM March 28 News:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were quoted at a premium of 30 yuan/mt to 90 yuan/mt, with an average premium of 60 yuan/mt, down 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 40 yuan/mt to 20 yuan/mt, with an average discount of 30 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 80,665 yuan/mt, down 900 yuan/mt from the previous trading day, while the average price of SX-EW copper was 80,575 yuan/mt, down 900 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong has increased for five consecutive days, mainly due to increased arrivals and weakened consumption. Although copper prices fell significantly again today, downstream companies were reluctant to restock as the quarter-end approached, forcing suppliers to lower premiums to secure deals. As of 11:00, high-quality copper against the front-month contract was quoted at a premium of 9 yuan/mt, standard-quality copper at a premium of 30 yuan/mt, and SX-EW copper at a discount of 30 yuan/mt. We expect arrivals to continue increasing over the weekend, and spot trades are likely to improve only in early April.

Overall, despite the decline in copper prices, downstream companies remain unwilling to restock, and suppliers have no choice but to lower premiums to sell, resulting in poor overall trading activity.

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