SMM News, March 20:
Today, Guangdong #1 copper cathode spot prices against the front-month contract were quoted at premiums of 110 yuan/mt for high-quality copper, down 40 yuan/mt from yesterday; parity for standard-quality copper, down 20 yuan/mt from yesterday; and a discount of 60 yuan/mt for SX-EW copper, down 20 yuan/mt from yesterday. The average price of Guangdong #1 copper cathode was 95,945 yuan/mt, up 210 yuan/mt from the previous trading day, while the average price of SX-EW copper was 95,830 yuan/mt, up 215 yuan/mt from the previous trading day.
Spot market: Guangdong inventory declined for four consecutive days, mainly due to scarce arrivals and increased shipments. Current inventory has fallen by 21,000 mt from the annual high. As inventory continued to decline, suppliers had intended to hold prices firm and ship goods, with standard-quality copper initially quoted at a premium of 30 yuan/mt in early trading. However, as copper prices stopped falling and rebounded, coupled with active downstream restocking during yesterday’s sharp decline, restocking enthusiasm today was weaker than yesterday. Suppliers could only lower spot premiums to move cargo, and deals were concluded only when standard-quality copper was quoted at parity. Today, the copper cathode procurement sentiment index in Guangdong was 2.51, down 0.15 from the previous trading day, while the shipment sentiment index was 3.38, down 0.05 from the previous trading day (historical data is available in the database).
Overall, after copper prices stopped falling and rebounded, downstream restocking appetite was weaker than yesterday, and spot premiums retreated after rapid rise.
