Copper prices remain high, with downstream buyers cautious in procurement. Spot premiums continue to decline [SMM spot copper in South China]

SMM reported on July 3:

Today, in Guangdong, spot premiums for #1 copper cathode against the front-month contract ranged from 30 yuan/mt to 100 yuan/mt, with an average premium of 65 yuan/mt, a decrease of 20 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 30 yuan/mt to 10 yuan/mt, with an average discount of 20 yuan/mt, also a decrease of 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 80,965 yuan/mt, an increase of 70 yuan/mt from the previous trading day, while the average price of SX-EW copper was 80,880 yuan/mt, also up by 70 yuan/mt from the previous trading day.

Spot market: Guangdong's inventory has increased for four consecutive days. The main reason for the inventory increase is the low willingness of downstream buyers to replenish stocks amid high copper prices. Affected by this, suppliers have to continuously lower premiums to sell, but even so, market trading remains poor. As of 11 a.m., high-quality copper for the front-month contract was quoted at 100 yuan/mt, standard-quality copper at a premium of 20 yuan/mt, and SX-EW copper at a discount of 30 yuan/mt.

Overall, with copper prices remaining high, downstream buyers are cautious in their purchases, and spot premiums continue to decline.

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