Inventory Hit a New Annual Low as Suppliers Actively Held Prices Firm, Overall Trading Atmosphere Better Than Yesterday [SMM South China Spot Copper]

SMM April 22 update:

Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 310 yuan/mt, up 20 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 230 yuan/mt, up 30 yuan/mt from the previous day; SX-EW copper was quoted at a premium of 170 yuan/mt, up 30 yuan/mt from the previous day. The average price of Guangdong #1 copper cathode was 102,455 yuan/mt, up 35 yuan/mt from the previous trading day, and the average price of SX-EW copper was 102,355 yuan/mt, up 40 yuan/mt from the previous trading day.

Spot market: Guangdong inventory resumed its decline after only one day of increase, primarily due to reduced arrivals. With continued inventory decline coupled with relatively small copper price fluctuations, suppliers had a strong willingness to hold prices firm. During the early session, standard-quality copper was quoted at 230 yuan/mt, but was quickly snapped up, and suppliers continued to raise prices for shipments. Eventually, mainstream transaction prices for standard-quality copper rose to 230 yuan/mt. Overall trading activity was better than the previous day. The purchasing sentiment for copper cathode in Guangdong was 2.45, up 0.07 from the previous trading day, and the shipment sentiment was 3.69, up 0.07 from the previous trading day (historical data can be accessed via the database).

Overall, inventory hit a new low for the year, and suppliers actively held prices firm. Overall trading activity was better than the previous day.