Copper Prices Rebound, Downstream Manufacturers Exhibit Strong Wait-and-See Sentiment, Overall Trading Activity Weaker Than Yesterday [SMM South China Spot Copper]

SMM Nov. 6:

In Guangdong, spot prices of #1 copper cathode against the front-month contract were at a discount of 40 yuan/mt to a premium of 10 yuan/mt, with the average premium flat from the previous session at 15 yuan/mt. SX-EW copper was quoted at a discount of 110-70 yuan/mt, with the average discount unchanged at 90 yuan/mt. The average price of #1 copper cathode in Guangdong was 85,730 yuan/mt, up 465 yuan/mt from the previous session, while the average price of SX-EW copper was 85,655 yuan/mt, also up 465 yuan/mt.

Spot market: Copper inventories in Guangdong fell for the third consecutive day, mainly due to undersupply. Despite the continued decline in inventories, downstream buyers showed lower restocking enthusiasm amid higher copper prices, forcing suppliers to keep quotations unchanged from yesterday. Overall trading activity was weaker than the previous session. Purchasing sentiment for copper cathode in Guangdong was 1.5, down 0.09 from the previous session, while selling sentiment was 2.83, up 0.08 (historical data available 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, downstream manufacturers maintained a strong wait-and-see sentiment amid the rebound in copper prices, leading to weaker overall trading activity compared to the previous session.