Downstream consumption remains sluggish, suppliers can only lower prices to sell, overall trading activity is average [SMM Southern China Spot Copper]

SMM Nov. 4:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 50 yuan/mt to a premium of 10 yuan/mt, with the average discount at 20 yuan/mt, down 10 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 120 yuan/mt to a discount of 80 yuan/mt, with the average discount at 100 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 86,735 yuan/mt, down 200 yuan/mt from the previous trading day, while the average price of SX-EW copper was 86,655 yuan/mt, down 200 yuan/mt from the previous trading day.

Spot market: Copper inventories in Guangdong decreased again today, mainly due to reduced arrivals and increased warehouse withdrawals. Although copper prices fell, downstream purchase interest remained low, forcing suppliers to continuously lower premiums to move goods, resulting in overall poor trading activity. Today, the procurement sentiment for copper cathode in Guangdong was 1.43, down 0.09 from the previous trading day, while the sales sentiment was 2.51, up 0.15 from the previous trading day (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 10 yuan/mt, standard-quality copper at a discount of 50 yuan/mt, and SX-EW copper at a discount of 100 yuan/mt.

Overall, downstream demand remained weak, forcing suppliers to lower prices to sell, with overall trading activity being moderate.