SMM News, March 9:
Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at 90 yuan/mt, up 60 yuan/mt; standard-quality copper was quoted at a discount of 110 yuan/mt, up 60 yuan/mt; SX-EW copper was quoted at a discount of 170 yuan/mt, up 60 yuan/mt. The average price of Guangdong #1 copper cathode was 99,425 yuan/mt, down 1,475 yuan/mt from the previous trading day, while the average price of SX-EW copper was 99,265 yuan/mt, down 1,475 yuan/mt from the previous trading day.
Spot market: After the weekend, Guangdong inventory did not continue to increase; instead, destocking occurred, mainly driven by higher warehouse withdrawals. Early in the session, copper prices fell sharply, boosting downstream buyers’ restocking enthusiasm. Suppliers proactively adjusted prices for shipments, and overall trading activity improved significantly. However, as copper prices stopped falling and rebounded, then surged sharply, restocking sentiment pulled back. Today, procurement sentiment for copper cathode in Guangdong was 2.75, up 0.13 from the previous trading day, while shipment sentiment was 3.24, up 0.23 from the previous trading day. (Historical data can be accessed by logging into the database.)
Overall, the sharp early-session drop in copper prices stimulated downstream restocking, spot premiums rose sharply, and overall trading was better than last Friday.
