July 31 SMM Guangdong copper spot market KuaiBao: market sentiment reversed rising water shock higher

SMM7 March 31: today, the spot price of electrolytic copper in Guangdong province quoted a discount of 70 yuan to the contract of that month, with an average price increase of 30 yuan / ton; wet copper quoted a discount of 110 to 100 yuan, with an average price increase of 40 yuan per ton. The average price of electrolytic copper is 51805 yuan / ton up 25 yuan / ton, and the average price of wet process copper is 51735 yuan / ton up 35 yuan / ton. Spot market: although Guangdong inventory continues to soar today, Guangdong inventory as of Friday was 42400 tons more than last Friday, but the holder changed yesterday's behavior of selling goods to cherish sales waiting to rise, in early trading can still hear-80/70pc transactions, but to the second quarter when few traders shipped, even if there are shipments is also sky-high. The reasons for such a big contrast between yesterday and today are as follows: 1, the holder is more willing to receive the goods when the discount is large; 2, there is arbitrage opportunity for the spread expansion; 3, the holder of the gradual resumption of production in the lower reaches of next week expects consumption to improve, bullish and rising water. Overall, today's market trading is significantly better than yesterday, rising water follows the rising tide. However, we believe that the height of the rebound in rising water next week may be limited, demand will not have a strong recovery, and high inventories restrict the height of the rebound.