Stockpiling was moderate before the holiday, with suppliers insisting on selling at high premiums [[SMM Spot Copper in South China]]

SMM April 28 News:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were reported at a premium of 180 yuan/mt to 230 yuan/mt, with an average premium of 205 yuan/mt, unchanged from the previous trading day. SX-EW copper was reported at a premium of 120 yuan/mt to 140 yuan/mt, with an average premium of 130 yuan/mt, also unchanged from the previous trading day. The average price of #1 copper cathode in Guangdong was 77,620 yuan/mt, down 515 yuan/mt from the previous trading day, while the average price of SX-EW copper was 77,545 yuan/mt, also down 515 yuan/mt from the previous trading day.

Spot Market: Guangdong's inventory has declined for 18 consecutive days, primarily due to robust downstream consumption. Inventory dropped sharply after the weekend and is now close to falling below the 20,000 mt threshold. Stimulated by this, suppliers insist on selling at high premiums, and downstream consumers can only passively accept the high premiums amidst the continuously decreasing inventory. However, we understand that some manufacturers will take a two-day holiday around the Labor Day, and it is expected that stockpiling before the holiday will come to an end tomorrow. As of 11 a.m., high-quality copper against the front-month contract was reported at 230 yuan/mt, standard-quality copper at 180 yuan/mt, and SX-EW copper at a premium of 130 yuan/mt. Attention should be paid to whether inventory can continue the destocking momentum after the Labor Day.

Overall, stockpiling before the holiday was moderate, suppliers insisted on selling at high premiums, and overall trading was moderate.

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