Enterprises faced pressure to recoup funds and actively lowered prices to sell goods, with spot premiums declining. [SMM South China Spot Copper]

SMM December 23:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 150-100 yuan/mt, with an average discount of 125 yuan/mt, down 50 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 220-200 yuan/mt, with an average discount of 210 yuan/mt, down 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 93,580 yuan/mt, down 95 yuan/mt from the previous trading day, while the average price of SX-EW copper was 93,495 yuan/mt, also down 95 yuan/mt.

Spot market: Guangdong inventory increased for the fourth consecutive day, primarily due to increased arrivals. Approaching month-end, both suppliers and downstream manufacturers faced pressure to recoup funds, leading suppliers to actively sell goods and downstream buyers to reduce purchases, causing spot premiums to continue declining. The procurement sentiment for copper cathode in Guangdong was 1.43, down 0.07 from the previous trading day, while the sales sentiment was 3.18, up 0.10 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 discount of 100 yuan/mt, standard-quality copper at a discount of 150 yuan/mt, and SX-EW copper at a discount of 210 yuan/mt.

Overall, enterprises faced pressure to recoup funds, actively reduced prices to sell goods, spot premiums declined, and overall trading was weak.