Inventory Declined for 16 Consecutive Weeks, Suppliers Actively Supported, Spot Premiums Led the Gains Nationwide [SMM South China Spot Copper Cathode Weekly Review]

SMM April 24 News: Guangdong Region: This week, the premiums and discounts in the region showed a fluctuating upward trend. The inventory in Guangdong has been declining for 16 consecutive trading days with signs of accelerating decline. Affected by this, suppliers actively stood firm on quotes, leading to a continuous rise in spot premiums. As of Thursday, high-quality copper was quoted at a premium of 250 yuan/mt, up 100 yuan/mt WoW; standard-quality copper was quoted at 200 yuan/mt, up 100 yuan/mt WoW; SX-EW copper was quoted at a premium of 150 yuan/mt, up 100 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums and discounts between Shanghai and Guangdong was 50 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 35,100 mt, down 13,200 mt WoW, with warrants totaling 9,600 mt, down 7,500 mt WoW. Specifically, this week's warehouse arrivals were 8,100 mt/week, down 1,700 mt/week WoW, significantly below the annual average (14,000 mt/week). Both imported copper and domestic copper arrivals were low this week. Outflows from warehouses were 20,800 mt/week, up 3,700 mt/week WoW, higher than the annual average (14,200 mt/week). Reduced arrivals forced downstream users to pick up more goods from warehouses. Additionally, tight copper scrap supply was a key factor stimulating copper cathode consumption. Looking ahead to next week, domestic copper and imported copper arrivals are still unlikely to see a significant increase. In terms of downstream consumption, some companies are preparing for the May Day holiday by replenishing stocks in advance. Therefore, we expect a situation of tight supply and increased demand next week, with weekly inventory continuing to decline and spot premiums likely to remain high. 》Order to view SMM metal spot historical prices.