SMM, June 3:
Today in Guangdong, spot prices against the front-month contract for #1 copper cathode were quoted at a discount of 120 yuan/mt to a premium of 0 yuan/mt, with an average discount of 60 yuan/mt, a decrease of 75 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 180 yuan/mt to 160 yuan/mt, with an average discount of 170 yuan/mt, a decrease of 100 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,180 yuan/mt, an increase of 70 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,070 yuan/mt, an increase of 45 yuan/mt from the previous trading day.
Spot market: After the Dragon Boat Festival holiday, inventory in Guangdong increased significantly, mainly due to an increase in arrivals and a decrease in outflows from warehouses. Affected by this, suppliers could only lower prices to sell their goods. In the morning session, the price of standard-quality copper only decreased slightly. However, some large suppliers had cash needs and continuously lowered their premiums, causing premiums to continue to decline. As of 11 a.m., high-quality copper against the front-month contract was quoted at 0 yuan/mt, standard-quality copper at a discount of 120 yuan/mt, and SX-EW copper at a discount of 170 yuan/mt. Due to tight supply of high-quality copper, its quotes remained firm, and the price spread between high-quality copper and standard-quality copper widened.
Overall, inventory increased significantly after the holiday, and suppliers took the initiative to lower prices to sell their goods. Spot trades were relatively quiet today.
