SMM News, December 19:
Today, spot premiums for #1 copper cathode in Guangdong against the front-month contract were quoted at 140-190 yuan/mt, with an average premium of 165 yuan/mt, up 20 yuan/mt from the previous trading day. Hydro copper premiums were quoted at 60-120 yuan/mt, with an average premium of 90 yuan/mt, also up 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 74,005 yuan/mt, down 300 yuan/mt from the previous trading day, while the average price of hydro copper was 73,930 yuan/mt, also down 300 yuan/mt.
Spot market: Guangdong inventory declined for three consecutive days, hitting a new low for the year. Stimulated by this, suppliers stood firm on quotes and actively sold, leading to a slight increase in premiums today. Downstream buyers were forced to accept higher prices but only purchased as needed without stockpiling. As of 11:00 am, premiums for high-quality copper against the front-month contract were quoted at 190 yuan/mt, standard-quality copper at 140 yuan/mt, and hydro copper at 90 yuan/mt. We expect inventory to remain at low levels in the short term, with premiums staying high.
Overall, inventory hit a new low for the year, suppliers stood firm on quotes, and spot premiums rose.
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