Copper prices rose sharply, with significant differences between buyers and sellers and overall sluggish trading [SMM spot copper in South China]

SMM News on July 2:

Today, in Guangdong, the spot prices of #1 copper cathode against the front-month contract range from a premium of 50 yuan/mt to a premium of 120 yuan/mt, with an average premium of 85 yuan/mt, down 5 yuan/mt from the previous trading day. SX-EW copper is quoted at a discount of 10 yuan/mt to a premium of 10 yuan/mt, with an average price of 0 yuan/mt, unchanged from the previous trading day. The average price of #1 copper cathode in Guangdong is 80,895 yuan/mt, up 820 yuan/mt from the previous trading day, while the average price of SX-EW copper is 80,810 yuan/mt, up 825 yuan/mt from the previous trading day.

Spot Market: Guangdong's inventory has increased for three consecutive days, but the increase is limited. The main reasons are the increase in arrivals and weak consumption. Despite the rise in inventory and copper prices, suppliers expect the inventory to remain tight in the future market, so they insist on selling at yesterday's premium. However, downstream processing enterprises are reluctant to rush to buy amid continuous price rise due to the high premium, leading to significant differences between buyers and sellers and poor overall trading. As of 11 a.m., high-quality copper against the front-month contract is quoted at a premium of 120 yuan/mt, standard-quality copper at a premium of 50 yuan/mt, and SX-EW copper at 0 yuan/mt.

Overall, suppliers remain optimistic about future premiums and are unwilling to sell at low prices, but processing enterprises are not actively restocking, resulting in a quiet overall trading environment.

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