Copper Prices Pull Back, Downstream Restocking Increases, Inventories Decline, Spot Trades Improve [SMM Southern China Spot Copper]

SMM Jan. 19:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 120-50 yuan/mt, with the average discount at 85 yuan/mt, up 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 210-170 yuan/mt, with the average discount at 190 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 100,915 yuan/mt, down 1,410 yuan/mt from the previous trading day, while the average price of SX-EW copper was 100,810 yuan/mt, down 1,410 yuan/mt from the previous trading day.

Spot market: After the weekend, inventory in Guangdong edged down, mainly due to recovering consumption. As copper prices pulled back, downstream buying interest increased, and suppliers held prices firm, pushing spot premiums higher. Overall spot trades improved compared with last Friday. Today, purchasing sentiment for copper cathode in Guangdong was 2.43, up 0.11 from the previous trading day, while selling sentiment was 2.99, up 0.04 from the previous trading day (historical data available in the database). As of 11:00, high-quality copper against the front-month contract was quoted at a discount of 50 yuan/mt, standard-quality copper at a discount of 120 yuan/mt, and SX-EW copper at a discount of 190 yuan/mt.

Overall, as copper prices pulled back, downstream restocking increased and inventory declined, leading to improved spot trades.