Inventory and copper prices both decline, while price spread between futures contracts widens. Trading weakens and premiums fall [SMM spot copper in South China]

SMM, June 12:

Today in Guangdong, spot #1 copper cathode was quoted at a premium of 20 yuan/mt to a premium of 100 yuan/mt against the front-month contract, with an average premium of 60 yuan/mt, down 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 50 yuan/mt to a discount of 30 yuan/mt, with an average discount of 40 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 79,010 yuan/mt, down 295 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,910 yuan/mt, down 275 yuan/mt from the previous trading day.

Spot market: Today, inventory in Guangdong continued to decline, marking the sixth consecutive day of decline, primarily due to relatively small supply. Although both copper prices and inventory fell today, downstream manufacturers had low restocking intentions due to a significant widening of the price spread between futures contracts. Suppliers could only lower premiums to sell, but concerns remained that inventory would continue to decline in the future, so the reduction was relatively small. As of 11 a.m., high-quality copper for the front-month contract was quoted at a premium of 100 yuan/mt, standard-quality copper at a premium of 20 yuan/mt, and SX-EW copper at a discount of 40 yuan/mt.

Overall, both inventory and copper prices fell, but the price spread between futures contracts widened, leading to weaker transactions and a decline in premiums.

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