Copper Prices Surge Amid Weak Downstream Consumption, Spot Premiums Retreat After Rapid Rise [SMM South China Spot Copper]

SMM Jan. 29:

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, flat from the previous trading day. The average price of #1 copper cathode in Guangdong was 102,645 yuan/mt, up 1,130 yuan/mt from the previous trading day, while the average price of SX-EW copper was 102,480 yuan/mt, up 1,130 yuan/mt from the previous trading day.

Spot market: Guangdong inventory edged down today, mainly due to increased warehouse withdrawals and reduced arrivals. In the morning session, encouraged by the inventory decline, suppliers actively held prices firm, with standard-quality copper quoted at a discount of 320 yuan/mt, but downstream restocking demand remained sluggish. In the second session, as copper prices surged sharply, buyers became even scarcer, and spot premiums pulled back. Today, purchasing sentiment for copper cathode in Guangdong was 1.81, down 0.17 from the previous trading day, while selling sentiment was 3.54, down 0.2 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, copper prices surged sharply while downstream consumption remained sluggish, spot premiums retreated after a rapid rise, and overall trading was quiet.