Approaching delivery with a large price spread between futures contracts, downstream users have strong wait-and-see sentiment [SMM spot copper in South China]

SMM, June 16:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 50 yuan/mt to a premium of 50 yuan/mt against the front-month contract, with an average premium of 0 yuan/mt, down 25 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 110 yuan/mt to 90 yuan/mt, with an average discount of 100 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,590 yuan/mt, down 285 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,490 yuan/mt, down 270 yuan/mt from the previous trading day.

Spot market: Guangdong's inventory increased significantly after the weekend, primarily due to weak downstream purchasing sentiment amid a large price spread between futures contracts and the approaching delivery date. Suppliers had to ship copper cathode to warehouses for delivery. Consequently, suppliers had to lower premiums to sell, but the effect was not significant, and overall trading was sluggish. 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 50 yuan/mt, and SX-EW copper at a discount of 100 yuan/mt.

Overall, with the approaching delivery date and a large price spread between futures contracts, downstream users are adopting a wait-and-see attitude, and overall trading remains sluggish.

》Subscribe to view SMM metal spot historical prices