SMM February 24:
Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a discount of 300 yuan/mt to a premium of 0 yuan/mt, with the average discount at 150 yuan/mt, down 110 yuan/mt from before the holiday. SX-EW copper was quoted at a discount of 380 yuan/mt to 340 yuan/mt, with the average discount at 360 yuan/mt, down 200 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 100,925 yuan/mt, up 735 yuan/mt from the previous trading day, while the average price of SX-EW copper was 100,715 yuan/mt, up 645 yuan/mt from the previous trading day.
Spot market: After the Chinese New Year holiday, Guangdong's inventory increased significantly by 35,000 mt, the largest post-holiday increase on record. The substantial inventory buildup and some suppliers' urgency to make shipments led to a sharp decline in prices for cargoes with invoices dated this month, with standard-quality copper quoted at a discount of 300 yuan/mt. However, most downstream consumers had not yet resumed production, with only a few large plants having procurement demand. Today, the procurement sentiment for copper cathode in Guangdong was 2.1, up 0.2 from the previous trading day, while the shipment sentiment was 2.5, down 0.1 from the previous trading day (historical data can be queried in the database). As of 11:00, high-quality copper against the front-month contract was quoted at 0 yuan/mt, standard-quality copper at a discount of 300 yuan/mt, and SX-EW copper at a discount of 360 yuan/mt. Standard-quality copper against the next-month contract was quoted at a discount of 460 yuan/mt.
Overall, the significant inventory increase and some suppliers' urgency to make shipments prompted active price reductions, leading to lower spot premiums, with overall trading activity remaining sluggish.
