Copper Prices Retreat from Highs but Consumption Remains Weak Overall Trading Not Active [SMM Spot Copper in South China]

SMM January 30 news:

Today, spot #1 copper cathode in Guangdong was at a discount of 320-120 yuan/mt against the front-month contract, with the average discount at 220 yuan/mt, up 15 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 380-360 yuan/mt, with the average discount at 370 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 105,840 yuan/mt, up 3,195 yuan/mt from the previous trading day, while the average price of SX-EW copper was 105,690 yuan/mt, up 3,210 yuan/mt from the previous trading day.

Spot market: Inventory in Guangdong declined for two consecutive days, but the decrease was limited. Copper prices retreated from highs, and inventory continued to drop, prompting suppliers to hold prices firm, pushing up the premium. However, downstream manufacturers still considered copper prices high, leading to limited restocking demand, and overall trading activity remained subdued. Today, the procurement sentiment for copper cathode in Guangdong was 1.73, down 0.08 from the previous trading day, while the sales sentiment was 3.51, down 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 120 yuan/mt, standard-quality copper at a discount of 320 yuan/mt, and SX-EW copper at a discount of 370 yuan/mt.

Overall, copper prices retreated from highs, but consumption remained weak, and overall trading activity was subdued.