SMM March 18 News:
Today, spot #1 copper cathode in Guangdong was quoted at a premium of 50-100 yuan/mt against the front-month contract, with an average premium of 75 yuan/mt, down 25 yuan/mt from the previous trading day. Hydro copper was quoted at a premium of 40-50 yuan/mt, with an average premium of 45 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 80,470 yuan/mt, up 475 yuan/mt from the previous trading day, while the average price of hydro copper was 80,385 yuan/mt, up 470 yuan/mt from the previous trading day.
Spot market: Guangdong inventory has declined for 11 consecutive days, mainly due to reduced arrivals and increased outflows from warehouses. Benefiting from the continuous inventory decline, suppliers continued to stand firm on quotes after the contract rollover. Standard-quality copper was quoted at 30 yuan/mt yesterday and rose to 50 yuan/mt today. However, the rising copper prices and premiums and discounts discouraged downstream buyers from making large purchases, maintaining only purchasing as needed. As of 11:00 am, high-quality copper was quoted at a premium of 100 yuan/mt against the front-month contract, standard-quality copper at a premium of 50 yuan/mt, and hydro copper at a discount of 10 yuan/mt. We expect premiums to have further room for increase in the future.
Overall, both copper prices and premiums rose, but actual transactions were moderate. Attention should be paid to whether inventory will continue to decline in the future.
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