Copper Prices Soar, Downstream Buyers Cautiously Restock, Spot Premiums Decline Again [SMM Southern China Spot Copper]

SMM September 24:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a premium of 20 yuan/mt to 100 yuan/mt, with the average premium at 60 yuan/mt, down 10 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 60 yuan/mt to 40 yuan/mt, with the average discount at 50 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 82,385 yuan/mt, up 2,355 yuan/mt from the previous trading day, while the average price of SX-EW copper was 82,275 yuan/mt, up 2,345 yuan/mt from the previous trading day.

Spot market: Guangdong inventory continued to decline today, marking the sixth consecutive drop, mainly due to reduced arrivals. Influenced by the sharp rise in copper prices, downstream purchasing enthusiasm was weak today. Suppliers had to lower prices to facilitate sales, leading to a decrease in spot premiums. The procurement sentiment for copper cathode in Guangdong was 2.98 today, down 0.19 from the previous trading day, while the sales sentiment was 3.34, up 0.11 (historical data can be queried in the database). As of 11:00, high-quality copper against the front-month contract was quoted at a premium of 100 yuan/mt, standard-quality copper at a premium of 20 yuan/mt, and SX-EW copper at a discount of 50 yuan/mt.

Overall, downstream purchasing remained cautious amid the surge in copper prices, spot premiums declined again, and overall trading activity was weak.