Copper Prices Pull Back, Downstream Makes Just-in-Time Procurement, Market Has Not Yet Recovered Significantly [SMM North China Spot Copper]

SMM December 16 News:

In North China today, spot prices of #1 copper cathode against the front-month contract were at a discount of 330-270 yuan/mt, with an average discount of 300 yuan/mt, down 80 yuan/mt from the previous trading day. Transaction prices ranged from 91,170 to 91,880 yuan/mt, with the average price at 91,525 yuan/mt, down 465 yuan/mt from the previous trading day. According to SMM methodology, spot copper cathode prices in North China were quoted against the front-month contract today. After delivery, spot premiums/discounts weakened due to the futures price spread structure. As copper prices pulled back, downstream users made some just-in-time procurement. However, on one hand, accumulated finished product inventories from earlier are still being digested, and on the other hand, downstream users maintained a wait-and-see sentiment toward copper prices, so market activity has not significantly recovered. Today in North China, the procurement sentiment for copper cathode was 1.39, up 0.24 from the previous trading day, while the sales sentiment was 1.99, up 0.11 from the previous trading day ().