Copper prices continued to pull back, but demand remained weak, and spot premiums continued to decline [SMM spot copper in South China]

SMM reported on July 8:

Today, spot #1 copper cathode in Guangdong traded at a discount of 100 yuan/mt to a premium of 0 yuan/mt against the front-month contract, with an average discount of 50 yuan/mt, a decrease of 45 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 160 yuan/mt to 140 yuan/mt, with an average discount of 150 yuan/mt, a decrease of 40 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 79,610 yuan/mt, a decrease of 195 yuan/mt from the previous trading day, while the average price of SX-EW copper was 79,490 yuan/mt, a decrease of 210 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong has increased for seven consecutive days, with weak consumption and limited outflows from warehouses. Although copper prices have continued to pull back, orders from end-users have not improved significantly, and restocking intentions remain average. Suppliers have no choice but to continue to slash prices significantly to sell goods. After prices fell to a discount of 100 yuan/mt, market trading finally improved. As of 11 a.m., high-quality copper for the front-month contract was quoted at 0 yuan/mt, standard-quality copper at a discount of 100 yuan/mt, and SX-EW copper at a discount of 140 yuan/mt. As the delivery date approaches, there is limited room for high-quality copper prices to continue to fall sharply, leading to an expansion in the price spread between high-quality and standard-quality copper.

Overall, copper prices continue to pull back, but demand remains weak, and spot premiums continue to decline. Attention should be paid to whether inventory will continue to increase tomorrow.

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