Inventory declines again, coupled with a narrowing price spread between futures contracts, prompting suppliers to actively refuse to budge on prices [SMM spot copper in South China]

SMM, June 5:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were reported at a discount of 80 yuan/mt to a premium of 50 yuan/mt, with an average discount of 15 yuan/mt, an increase of 50 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 140 yuan/mt to 120 yuan/mt, with an average discount of 130 yuan/mt, up 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,265 yuan/mt, down 30 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,150 yuan/mt, down 30 yuan/mt from the previous trading day.

Spot market: Guangdong's inventory ended its four-day consecutive increase and began to decline again, primarily due to reduced arrivals. With the decrease in inventory, suppliers started to refuse to budge on prices when shipping goods. Coupled with a significant narrowing of the price spread between futures contracts, there was a noticeable increase in purchases, driving up spot premiums today. As of 11 a.m., high-quality copper against the front-month contract was quoted at 60 yuan/mt, standard-quality copper at a discount of 60 yuan/mt, and SX-EW copper at a discount of 110 yuan/mt.

Overall, with inventory declining again and the price spread between futures contracts narrowing, suppliers actively refused to budge on prices, leading to a continuous rise in spot premiums. Overall trading activity was better than yesterday.

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