Copper Prices Rise Again with Weak Downstream Restocking Demand, Spot Premiums Only Flat from Yesterday [SMM South China Spot Copper]

SMM Jan. 22:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 200-90 yuan/mt, with the average discount at 145 yuan/mt, flat from the previous trading day. SX-EW copper was quoted at a discount of 260-240 yuan/mt, with the average discount at 250 yuan/mt, flat from the previous trading day. The average price of #1 copper cathode in Guangdong was 100,310 yuan/mt, up 490 yuan/mt from the previous trading day, while the average price of SX-EW copper was 100,205 yuan/mt, up 490 yuan/mt from the previous trading day.

Spot market: Guangdong inventory decreased significantly today, mainly due to a sharp increase in warehouse withdrawals. After the inventory decline, suppliers actively held prices firm, with standard-quality copper once quoted at a discount of 180 yuan/mt. However, downstream acceptance was poor (reportedly, finished product inventories at copper rod enterprises remain high), forcing a re-lowering of premiums, with the final premiums only flat from yesterday. Procurement sentiment for copper cathode in Guangdong today was 2.21, down 0.22 from the previous trading day, while sales sentiment was 3.41, up 0.09 from the previous trading day (historical data available via database login). As of 11:00, high-quality copper against the front-month contract was quoted at a discount of 90 yuan/mt, standard-quality copper at a discount of 200 yuan/mt, and SX-EW copper at a discount of 250 yuan/mt.

Overall, as copper prices rose again, downstream restocking willingness was low, and spot premiums were only flat from yesterday.