SMM May 19 Report:
Today, spot #1 copper cathode in Guangdong was quoted at premiums of 220-320 yuan/mt against the front-month contract, with an average premium of 270 yuan/mt, down 90 yuan/mt from the previous trading day. SX-EW copper was quoted at premiums of 160-180 yuan/mt, with an average premium of 170 yuan/mt, down 90 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 77,980 yuan/mt, down 750 yuan/mt from the previous trading day, while the average price of SX-EW copper was 77,880 yuan/mt, down 750 yuan/mt from the previous trading day.
Spot Market: Inventories in Guangdong have risen for three consecutive days, primarily due to increased arrivals and weakened consumption. Despite a significant pullback in copper prices, downstream buyers remain reluctant to purchase at high premiums. Suppliers have no choice but to continuously lower premiums. Standard-quality copper fell from a premium of 280 yuan/mt at the opening to 210 yuan/mt before a small volume of transactions was recorded. It is expected that there will still be downside room tomorrow. As of 11 a.m., high-quality copper for the front-month contract was quoted at a premium of 310 yuan/mt, standard-quality copper at a discount of 210 yuan/mt, and SX-EW copper at a discount of 160 yuan/mt.
Overall, downstream buyers remain sluggish in purchasing at high premiums, and spot premiums have significantly declined.
