Inventory hits recent low, suppliers actively refuse to budge on prices [SMM spot copper in South China]

SMM May 23 News:

Today, in Guangdong, spot #1 copper cathode was quoted at a premium of 180 yuan/mt to 260 yuan/mt against the front-month contract, with an average premium of 220 yuan/mt, up 15 yuan/mt from the previous trading day. SX-EW copper was quoted at a premium of 120 yuan/mt to 140 yuan/mt, with an average premium of 130 yuan/mt, up 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,060 yuan/mt, down 30 yuan/mt from the previous trading day, while the average price of SX-EW copper was 77,970 yuan/mt, down 25 yuan/mt from the previous trading day.

Spot market: Guangdong's inventory has declined sharply for two consecutive days, hitting a recent low, mainly due to increased outflows from warehouses. Stimulated by this, suppliers generally refused to budge on prices when selling. Standard-quality copper was once quoted at a premium of 200 yuan/mt, but downstream buyers showed limited interest in restocking due to the excessively high premium, forcing suppliers to lower their premiums. As of 11 a.m., high-quality copper for the front-month contract was quoted at 260 yuan/mt, standard-quality copper at a premium of 180 yuan/mt, and SX-EW copper at a premium of 130 yuan/mt. Attention should be paid to whether arrivals continue to decrease over the weekend.

Overall, with inventory hitting a recent low and suppliers actively refusing to budge on prices, overall trading activity was moderate.

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