Inventory Continues to Decline as Suppliers Actively Stand Firm on Quotes, but Excessive Price Increases Lead to Poor Actual Transactions [SMM South China Spot Copper]

Mar 21, 2025, at 4:06 am

SMM March 21 Report: Today, the spot #1 copper cathode in Guangdong against the front-month contract was quoted at 190-260 yuan/mt premium, with an average of 225 yuan/mt, up 40 yuan/mt from the previous trading day; SX-EW copper was quoted at 130-150 yuan/mt premium, with an average of 140 yuan/mt, up 50 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 81,785 yuan/mt, up 180 yuan/mt from the previous trading day, and the average price of SX-EW copper was 81,700 yuan/mt, up 190 yuan/mt from the previous trading day. Spot market: Guangdong inventory has been declining for 14 consecutive days, approaching the 40,000 mt mark, with a very rapid destocking speed. As a result, suppliers actively stood firm on quotes, and the price of standard-quality copper rose significantly compared to yesterday, reaching as high as 250 yuan/mt premium. However, due to the excessive increase, downstream enterprises were cautious in purchasing, leading to weak actual transactions. By 11 am, the high-quality copper against the front-month contract was quoted at 260 yuan/mt, standard-quality copper at 190 yuan/mt premium, and SX-EW copper at 140 yuan/mt premium. With limited supply of SX-EW copper, the price spread between it and standard-quality copper narrowed. Overall, despite continuous inventory decline and active price support by suppliers, the excessive increase led to poor actual transactions.

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