Downstream enterprises generally hold a bearish view of the future market, and spot premiums have been declining continuously [SMM spot copper in South China]

SMM reported on July 4:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract ranged from a discount of 10 yuan/mt to a premium of 60 yuan/mt, with an average premium of 25 yuan/mt, a decrease of 40 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 70 yuan/mt to 50 yuan/mt, with an average discount of 60 yuan/mt, a decrease of 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 80,550 yuan/mt, a decrease of 415 yuan/mt from the previous trading day, while the average price of SX-EW copper was 80,465 yuan/mt, a decrease of 415 yuan from the previous trading day.

Spot market: Inventory in Guangdong has increased for five consecutive days, primarily due to an increase in arrivals and weak consumption. It is expected that inventory will continue to increase next week. As the market generally holds a pessimistic view on future premiums, suppliers can only continuously lower premiums to sell goods. Spot premiums have been declining and eventually fell into a discount state. As of 11 a.m., high-quality copper for the front-month contract was quoted at 60 yuan/mt, standard-quality copper at a discount of 10 yuan/mt, and SX-EW copper at a discount of 60 yuan/mt.

Overall, downstream enterprises generally hold a bearish view on the future market, and spot premiums have been declining continuously.

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