Inventory Ends Consecutive Declines and Rises Again, Spot Trades Mediocre, Premiums Unchanged from Yesterday [SMM South China Spot Copper]

SMM Jan. 28:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 350-120 yuan/mt, with the average discount at 235 yuan/mt, flat from the previous trading day. SX-EW copper was quoted at a discount of 410-390 yuan/mt, with the average discount at 400 yuan/mt, also flat from the previous trading day. The average price of #1 copper cathode in Guangdong was 101,515 yuan/mt, up 10 yuan/mt from the previous trading day, while the average price of SX-EW copper was 101,350 yuan/mt, up 10 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong ended four consecutive declines and increased slightly, mainly due to increased arrivals and weakened consumption. As copper prices changed little and downstream restocking willingness remained relatively low nearing month-end, spot premiums eventually remained flat from yesterday. Today, purchasing sentiment for copper cathode in Guangdong was 1.98, up 0.04 from the previous trading day, while selling sentiment was 3.74, up 0.05 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 120 yuan/mt, standard-quality copper at a discount of 350 yuan/mt, and SX-EW copper at a discount of 400 yuan/mt.

Overall, inventory ended consecutive declines and increased again, while spot trades were mediocre and premiums remained flat from yesterday.