Copper Prices Plunge Sharply, Downstream Restocking Activity Increases, Spot Premiums Rise [SMM Southern China Spot Copper]

SMM Nov. 5:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 40 yuan/mt to a premium of 10 yuan/mt, with the average discount at 15 yuan/mt, up 5 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 110 yuan/mt to a discount of 70 yuan/mt, with the average discount at 90 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 85,265 yuan/mt, down 1,470 yuan/mt from the previous trading day, while the average price of SX-EW copper was 85,190 yuan/mt, down 1,465 yuan/mt from the previous trading day.

Spot market: Copper inventories in Guangdong continued to decline, mainly due to lower arrivals and increased warehouse withdrawals. As prices fell significantly, suppliers actively held prices firm to sell, and downstream buying enthusiasm also increased compared to the previous day, with overall trading activity improving. Today, purchasing sentiment for copper cathode in Guangdong was 1.59, up 0.16 from the previous trading day, while selling sentiment was 2.75, up 0.24 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 40 yuan/mt, and SX-EW copper at a discount of 90 yuan/mt.

Overall, as copper prices fell sharply, downstream buying enthusiasm increased, and spot premiums rose.