Inventory Declines for Two Consecutive Weeks, Premiums Edge Higher, But Actual Trading Activity Remains Weak [SMM South China Spot Copper]

SMM Jan. 23:

In Guangdong, spot prices of #1 copper cathode against the front-month contract were at a discount of 180-90 yuan/mt, with the average discount at 135 yuan/mt, up 10 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 240-220 yuan/mt, with the average discount at 230 yuan/mt, up 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 100,795 yuan/mt, up 485 yuan/mt from the previous trading day, while the average price of SX-EW copper was 100,700 yuan/mt, up 495 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong continued to decline, marking two consecutive drops, mainly due to reduced arrivals. Although copper prices fell sharply last night, downstream users showed limited restocking interest, and prices rebounded this morning, further dampening end-user purchase willingness, making it difficult for suppliers to hold prices firm significantly. Premiums only edged up. Purchase sentiment for copper cathode in Guangdong was 2.13, down 0.08 from the previous trading day, while sales sentiment was 3.44, up 0.03 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 90 yuan/mt, standard-quality copper at a discount of 180 yuan/mt, and SX-EW copper at a discount of 230 yuan/mt.

Overall, inventory declined for two consecutive days and premiums edged up, but actual trading remained weak.