Different Treatment for Different Sources; Divergence in Spot Copper Quotations Widens [SMM South China Spot Copper]

SMM, January 21:

Today, spot #1 copper cathode in Guangdong was quoted at a discount of 180-50 yuan/mt against the front-month contract, with an average discount of 115 yuan/mt, unchanged from the previous trading day. Hydro copper was quoted at a discount of 330-230 yuan/mt, with an average discount of 280 yuan/mt, up 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 75,435 yuan/mt, up 70 yuan/mt from the previous trading day, while the average price of hydro copper was 75,270 yuan/mt, up 90 yuan/mt from the previous trading day.

Spot market: Guangdong inventory has risen for seven consecutive days, mainly due to increased arrivals and decreased outflows from warehouses. Today's market quotations were relatively chaotic. Brands with delivery qualifications maintained firm quotes at a discount of 150 yuan/mt, while brands without delivery qualifications were quoted at a discount of 220 yuan/mt. Downstream factories preferred lower-priced copper, but traders were more willing to purchase brands eligible for delivery. As of 11:00 am, high-quality copper was quoted at a discount of 50 yuan/mt against the front-month contract, standard-quality copper at a discount of 200 yuan/mt, and hydro copper at a discount of 350 yuan/mt. Notably, due to the large discounts, suppliers preferred delivery over selling at low prices, with warehouse warrants increasing by 1,503 mt yesterday. It is expected that the price spread between the two brands will further widen in the future.

Overall, different treatments for different sources of supply have led to greater divergence in spot quotations.

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