The price spread between futures contracts widened significantly and copper prices continued to rise, spot trades were subdued [SMM South China spot copper]

SMM August 11:

Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was reported at a premium of 100 yuan/mt, flat from the previous trading day; standard-quality copper was reported at a premium of 10 yuan/mt, up 10 yuan/mt from the previous trading day; SX-EW copper was reported at a discount of 50 yuan/mt, up 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 108,565 yuan/mt, up 620 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,460 yuan/mt, up 625 yuan/mt from the previous trading day.

Spot market: Guangdong inventory increased for the second consecutive day, mainly due to increased arrivals of imported copper. Despite the continuous rise in inventory, domestic supply remained relatively tight, and suppliers continued to hold prices firm on their shipments. However, affected by a significant widening of the price spread between futures contracts and the continued rise in copper prices, end-users showed weak restocking enthusiasm, resulting in overall thin trading. Today, the procurement sentiment index for Guangdong copper cathode was 2.31, down 0.04 from the previous trading day, and the shipment sentiment index was 2.92, up 0.04 from the previous trading day (historical data can be accessed through the database).

Overall, the price spread between futures contracts widened significantly and copper prices continued to rise, leading to muted spot trades.