SMM, February 20:
Today, spot #1 copper cathode in Guangdong was quoted at a discount of 120-50 yuan/mt against the front-month contract, with an average discount of 85 yuan/mt, unchanged from the previous trading day. Hydro copper was quoted at a discount of 250-210 yuan/mt, with an average discount of 230 yuan/mt, also unchanged from the previous trading day. The average price of #1 copper cathode in Guangdong was 77,105 yuan/mt, up 20 yuan/mt from the previous trading day, while the average price of hydro copper was 76,960 yuan/mt, up 20 yuan/mt from the previous trading day.
Spot market: Today, Guangdong inventory continued to decline, mainly due to reduced arrivals. Although inventory decreased, a large volume of warehouse warrants began to flow into the market, making it difficult for spot premiums to rise and keeping them at yesterday's levels. As of 11:00 am, high-quality copper against the front-month contract was quoted at a discount of 50 yuan/mt, standard-quality copper at a discount of 120 yuan/mt, and hydro copper at a discount of 230 yuan/mt. It is expected that under the continued outflow of a large volume of warehouse warrants (currently at 53,200 mt), spot premiums in Guangdong may still rise significantly in the future.
Overall, the large outflow of warehouse warrants kept spot premiums unchanged from yesterday, but actual transactions were moderate.
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