Copper prices remained high, downstream buyers purchased cautiously, and spot premiums continued to decline [SMM Southern China Spot Copper]

SMM December 25:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 220-150 yuan/mt, with an average discount of 185 yuan/mt, down 10 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 300-280 yuan/mt, with an average discount of 290 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 94,715 yuan/mt, down 180 yuan/mt from the previous trading day, while the average price of SX-EW copper was 94,610 yuan/mt, down 200 yuan/mt from the previous trading day.

Spot market: Guangdong inventory increased for the sixth consecutive day, mainly due to weak consumption. Although copper prices dropped slightly, downstream users' purchasing desire remained sluggish, with only a few traders moderately increasing procurement volume as premiums fell sharply. The procurement sentiment for copper cathode in Guangdong was 1.24, up 0.03 from the previous trading day, while the sales sentiment was 3.45, up 0.08 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 150 yuan/mt, standard-quality copper at a discount of 220 yuan/mt, and SX-EW copper at a discount of 290 yuan/mt. The price spread between standard-quality copper and SX-EW copper widened as arrivals of imported copper increased.

Overall, copper prices remained high, prompting downstream buyers to restock cautiously. Spot premiums continued to decline, and overall trading activity was sluggish.