The price spread between futures contracts on the delivery day remains very large, with spot trades being sluggish [SMM spot copper in South China]

SMM May 15:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were reported at a discount of 100 yuan/mt to a premium of 50 yuan/mt, with an average discount of 25 yuan/mt, down 10 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 160 yuan/mt to 140 yuan/mt, with an average discount of 150 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,840 yuan/mt, down 115 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,715 yuan/mt, down 125 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong reversed a two-day decline and rose again, mainly due to weakened downstream consumption. The price spread between futures contracts during the delivery month remained large. Despite suppliers lowering their quotes from yesterday, downstream buyers were still reluctant to purchase, with some end-users only buying cargoes quoted for the next month. As of 11 a.m., high-quality copper for the front-month contract was quoted at 50 yuan/mt, standard-quality copper at a discount of 100 yuan/mt, and SX-EW copper at a discount of 150 yuan/mt, while the next-month contract was quoted at 370 yuan/mt.

Overall, the price spread between futures contracts during the delivery month remained large, and spot trades were sluggish.

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