Inventories and Copper Prices Both Hit Record Highs, Downstream Sectors Return to Inertia [SMM Spot Copper in South China]

SMM January 6:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 20 yuan/mt to a premium of 50 yuan/mt, with the average premium at 15 yuan/mt, down 25 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 100 yuan/mt to a discount of 80 yuan/mt, with the average discount at 90 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 103,815 yuan/mt, up 3,590 yuan/mt from the previous trading day, while the average price of SX-EW copper was 103,710 yuan/mt, up 3,585 yuan/mt from the previous trading day.

Spot market: Guangdong inventory continued to rise, marking the 12th consecutive increase, with weak consumption being the main reason. Copper prices surged again today, hitting a record high, and downstream wait-and-see sentiment intensified. Suppliers had to continuously lower premiums to move cargo. In the morning session, standard-quality copper was offered at a premium of 10 yuan/mt, but transactions were scarce. Even after adjusting the price to a discount of 20 yuan/mt, only limited deals were concluded. Today, the procurement sentiment for copper cathode in Guangdong was 1.25, down 0.12 from the previous trading day, while the sales sentiment was 3.29, up 0.09 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 premium of 50 yuan/mt, standard-quality copper at a discount of 20 yuan/mt, and SX-EW copper at a discount of 90 yuan/mt.

Overall, both inventory and copper prices reached new highs, downstream players retreated to the sidelines again, and spot trades were quiet.