The Price Spread on the Delivery Date Remained Wide, and Copper Prices Rose Sharply; Few Buyers Purchased [SMM South China Spot Copper]

SMM News on August 17:

Today, Guangdong #1 copper cathode spot prices against the front-month contract were quoted at a discount of 80 yuan/mt to a premium of 20 yuan/mt, with the average discount at 30 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a discount of 190 yuan/mt to a discount of 170 yuan/mt, with the average discount at 180 yuan/mt, up 20 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 109,625 yuan/mt, up 1,330 yuan/mt from the previous trading day, while the average price of SX-EW copper was 109,475 yuan/mt, up 1,320 yuan/mt from the previous trading day.

Spot market: After the weekend, Guangdong inventory increased sharply, and spot discounts were substantial. Suppliers actively shipped to delivery warehouses, driving up arrivals at warehouses. The price spread between futures contracts on the delivery day remained wide, and copper prices rose sharply, leaving very few buyers, with spot trades sluggish. Today, purchasing sentiment for copper cathode in Guangdong was 2.15, down 0.03 from the previous trading day, while selling sentiment was 2.81, down 0.04 from the previous trading day (historical data can be queried by logging into the database). As of 11:00, high-quality copper against the front-month contract was quoted at 20 yuan/mt, standard-quality copper at a discount of 80 yuan/mt, and SX-EW copper at a discount of 80 yuan/mt.

Overall, the price spread between futures contracts on the delivery day remained wide and copper prices rose sharply, leaving very few buyers, with spot trades sluggish.