SMM, January 14:
Today, spot #1 copper cathode in Guangdong was quoted at a premium of 200-250 yuan/mt against the front-month contract, with an average premium of 225 yuan/mt, down 100 yuan/mt from the previous trading day. Hydro copper was quoted at a premium of 60-100 yuan/mt, with an average premium of 80 yuan/mt, down 120 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 75,550 yuan/mt, down 175 yuan/mt from the previous trading day, while the average price of hydro copper was 75,405 yuan/mt, down 195 yuan/mt.
Spot market: Guangdong inventory increased for the second consecutive day, mainly due to higher arrivals and reduced outflows from warehouses. As downstream manufacturers gradually went on holiday, their procurement volume declined compared to before. Some suppliers continuously lowered prices to facilitate sales, leading to a continuous decline in premiums today. Notably, the price reduction for hydro copper was more significant, causing the price spread between standard-quality copper and hydro copper to widen again. As of 11:00 am, premiums for the front-month contract were quoted at 250 yuan/mt for high-quality copper, 200 yuan/mt for standard-quality copper, and 80 yuan/mt for hydro copper.
Overall, downstream consumption weakened, and suppliers continuously lowered prices to sell, but actual transactions were not ideal.
