Inventory Declines for 6 Consecutive Times, Suppliers Refuse to Budge on Prices, but Downstream Buyers Are Unwilling to Purchase More [SMM South China Spot Copper]

SMM August 26 News:

Today, the spot #1 copper cathode in Guangdong was at a premium of 40-90 yuan/mt against the front-month contract, with an average premium of 65 yuan/mt, up 5 yuan/mt from the previous trading day; SX-EW copper was at a discount of 30-10 yuan/mt, with an average discount of 20 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 79,555 yuan/mt, up 300 yuan/mt from the previous trading day, and the average price of SX-EW copper was 79,470 yuan/mt, up 305 yuan/mt.

Spot market: Inventory in Guangdong has been declining for six consecutive days, mainly due to lower arrivals and improved consumption. Stimulated by this, suppliers continued to refuse to budge on prices today, but buyers did not actively replenish stocks, purchasing only as needed. Today, the purchasing sentiment for electrolytic copper in the Guangdong region was 2.09, down 0.12 from yesterday, and the selling sentiment was 2.99, up 0.04 (historical data can be accessed in the database). As of 11 am, high-quality copper was at a premium of 90 yuan/mt, standard-quality copper was at a premium of 40 yuan/mt, and SX-EW copper was at a discount of 20 yuan/mt against the front-month contract.

Overall, despite the six-day inventory decline and suppliers' continued refusal to budge on prices, downstream buyers were unwilling to purchase more, resulting in moderate overall transactions.