Downstream replenishment demand was low before the holiday, and suppliers continuously lowered prices to sell their spot copper [SMM South China Spot Copper]

SMM May 29 report:

Today in Guangdong, spot prices of #1 copper cathode against the front-month contract were quoted at a premium of 30 yuan/mt to 100 yuan/mt, with an average premium of 65 yuan/mt, down 55 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 30 yuan/mt to 10 yuan/mt, with an average discount of 20 yuan/mt, down 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,365 yuan/mt, down 150 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,280 yuan/mt, down 145 yuan/mt from the previous trading day.

Spot market: Today, inventory in Guangdong ended a two-day decline and increased significantly, mainly due to an increase in arrivals and a decrease in outflows from warehouses. Downstream restocking demand was not high ahead of the Dragon Boat Festival, and suppliers had to continuously lower prices to sell their goods, causing premiums to continue to decline. As of 11 a.m., high-quality copper against the front-month contract was quoted at 100 yuan/mt, standard-quality copper at a premium of 30 yuan/mt, and SX-EW copper at a discount of 20 yuan/mt. We expect market trading to be even less active tomorrow, with premiums likely to continue to decline. We will closely monitor inventory trends after the Dragon Boat Festival.

Overall, downstream restocking demand was not high ahead of the festival, and suppliers had to continuously lower prices to sell their goods, resulting in generally sluggish trading.

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