Suppliers Actively Liquidated Holdings with Lower Premiums, Overall Trading Slightly Better Than Yesterday [SMM South China Spot Copper]

SMM April 23 update:

Guangdong #1 copper cathode spot prices against the front-month contract today: high-quality copper was quoted at 280 yuan/mt, down 10 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 200 yuan/mt, down 10 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 140 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,795 yuan/mt, up 515 yuan/mt from the previous trading day, and the average price of SX-EW copper was 102,695 yuan/mt, up 515 yuan/mt from the previous trading day.

Spot market: Guangdong inventory ended its two-session decline and saw a notable increase, mainly due to the successive arrival of cargoes from northern regions. Some suppliers, under greater pressure to liquidate, actively lowered prices for shipments. Standard-quality copper premiums were adjusted down to 200 yuan/mt with deals concluded. Downstream buyers slightly increased procurement volume ahead of the weekend, and overall trading activity was slightly better than the previous day. The procurement sentiment for copper cathode in Guangdong today was 2.31, up 0.06 from the previous trading day, and the shipment sentiment was 3.79, up 0.07 from the previous trading day (historical data can be accessed via the database).

Overall, suppliers actively liquidated holdings and lowered premiums, with overall trading activity slightly better than the previous day. However, it was learned that most downstream players will be on holiday during the Labour Day holiday, and demand is expected to continue declining next week, with spot premiums likely to trend lower.