After a brief restocking, downstream buyers did not purchase much more today. Suppliers had to lower the premium [SMM spot copper in South China]

SMM July 11 news:

Spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 110 yuan/mt to a premium of 50 yuan/mt, with the average discount at 30 yuan/mt, down 5 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 170-150 yuan/mt, averaging a discount of 160 yuan/mt, down 10 yuan/mt day-on-day. The average price of #1 copper cathode in Guangdong was 78,750 yuan/mt, up 210 yuan/mt from the previous session, while SX-EW copper averaged 78,620 yuan/mt, up 205 yuan/mt.

Spot market: Copper prices stopped falling and rebounded yesterday, stimulating downstream end-users to restock at low levels, leading to a long-awaited destocking in Guangdong after nine consecutive increases. However, restocking sentiment weakened today compared to yesterday, as the large price spread between futures contracts near delivery dampened end-users' willingness to continue replenishing inventories, and terminals refrained from large-scale purchases after yesterday's significant restocking. Consequently, suppliers had to lower premiums to move cargoes. As of 11:00, high-quality copper against the front-month contract was quoted at a premium of 50 yuan/mt, standard-quality copper at a discount of 110 yuan/mt, and SX-EW copper at a discount of 160 yuan/mt. Tight supply of high-quality copper and approaching delivery kept its premiums firm, widening the price spread against standard-quality copper.

Overall, downstream buyers reduced purchases today after brief restocking, forcing suppliers to cut premiums, with overall trading activity weaker than yesterday.

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