Spot premiums surged significantly after contract rollover, but downstream procurement remained moderate [SMM spot copper in South China]

SMM News on June 17:

Today in Guangdong, spot prices against the front-month contract for #1 copper cathode were reported at a premium of 180 yuan/mt to 260 yuan/mt, with an average premium of 220 yuan/mt, up 220 yuan/mt from the previous trading day. SX-EW copper was reported at a premium of 110 yuan/mt to 130 yuan/mt, with an average premium of 120 yuan/mt, up 220 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,695 yuan/mt, up 105 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,595 yuan/mt, up 105 yuan/mt from the previous trading day.

Spot Market: Today, inventory in Guangdong declined again, mainly due to reduced arrivals after delivery completion. Affected by the price spread between futures contracts, spot premiums rose significantly after contract rollover. Downstream enterprises showed strong purchasing intentions today, as they had made few purchases in the previous few days due to the large price spread. Therefore, even with higher premiums today, the actual market transactions were good. As of 11 a.m., high-quality copper for the front-month contract was reported at a premium of 260 yuan/mt, standard-quality copper at a premium of 180 yuan/mt, and SX-EW copper at a premium of 120 yuan/mt.

Overall, spot premiums rose significantly after contract rollover, but downstream purchasing was moderate, and overall trading was better than yesterday.

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