Suppliers end inventory liquidation and refuse to budge on prices, with spot premiums rising [SMM spot copper in South China]

SMM News on June 26:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract ranged from a premium of 10 yuan/mt to a premium of 100 yuan/mt, with an average premium of 55 yuan/mt, up 45 yuan/mt from the previous trading day. SX-EW copper was quoted at discounts of 50 yuan/mt to 30 yuan/mt, with an average discount of 40 yuan/mt, up 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,865 yuan/mt, up 300 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,770 yuan/mt, up 295 yuan from the previous trading day.

Spot Market: Inventory in Guangdong has declined for two consecutive days, primarily due to reduced arrivals. Benefiting from the inventory reduction and the end of suppliers' semi-annual inventory clearance, most merchants today refused to budge on prices when selling, leading to a rise in spot premiums. As of 11 a.m., high-quality copper against the front-month contract was quoted at a premium of 100 yuan/mt, standard-quality copper at a premium of 10 yuan/mt, and SX-EW copper at a discount of 40 yuan/mt. Attention should be paid to whether inventory will continue to decline next week; if so, premiums are expected to rise further.

Overall, with suppliers ending inventory clearance and shifting to refusing to budge on prices, spot premiums have risen, and overall trading activity is slightly better than yesterday.

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