Inventory continues to decline, suppliers hold prices firm, spot premiums rise [SMM South China Spot Copper]

SMM December 12 news:

Today, Guangdong #1 copper cathode spot prices against the front-month contract were at a premium of 70 yuan/mt to a premium of 120 yuan/mt, with an average premium of 95 yuan/mt, up 30 yuan/mt from the previous trading day. SX-EW copper was reported at a discount of 20 yuan/mt to a premium of 20 yuan/mt, with an average of 0 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 93,650 yuan/mt, up 865 yuan/mt from the previous trading day, while the average price of SX-EW copper was 93,555 yuan/mt, up 795 yuan/mt from the previous trading day.

Spot market: Guangdong inventory fell for three consecutive days, with reduced arrivals being the main reason. As inventory continued to decline and marketable supplies decreased, suppliers actively held prices firm. However, downstream buyers showed low purchasing enthusiasm amid high copper prices, resulting in overall quiet trading. Today, the procurement sentiment for electrolytic copper in Guangdong was 1.82, down 0.19 from the previous trading day, while the sales sentiment was 2.69, down 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 reported at a premium of 120 yuan/mt, standard-quality copper at a premium of 70 yuan/mt, and SX-EW copper at parity.

Overall, marketable inventory declined, and suppliers actively held prices firm, but downstream buyers were reluctant to purchase more, leading to quiet trading.