SMM November 7 News:
Today, #1 copper cathode spot prices against the front-month contract in Guangdong ranged from a discount of 40 yuan/mt to a premium of 10 yuan/mt, with an average premium of 15 yuan/mt, unchanged from the previous trading day; SX-EW copper was quoted at a discount of 110 yuan/mt to 70 yuan/mt, with an average discount of 90 yuan/mt, also unchanged from the previous trading day. The average price of #1 copper cathode in Guangdong was 85,915 yuan/mt, up 185 yuan/mt from the previous trading day, while the average price of SX-EW copper was 85,840 yuan/mt, also up 185 yuan/mt from the previous trading day.
Spot market: Copper inventories in Guangdong have been declining for four consecutive days, mainly due to reduced arrivals and increased warehouse withdrawals. As copper prices remained high, downstream restocking interest was lukewarm, making it difficult for suppliers to hold prices firm, only maintaining the level of the previous day. Today, the purchasing sentiment for electrolytic copper in the Guangdong region was 1.56, up 0.06 from the previous trading day, while the selling sentiment was 2.76, down 0.07 from the previous trading day (historical data can be accessed by logging into the database). By 11 am, high-quality copper against the front-month contract was quoted at a premium of 10 yuan/mt, standard-quality copper at a discount of 40 yuan/mt, and SX-EW copper at a discount of 90 yuan/mt. We expect the tight supply situation to remain unchanged, with inventory likely to continue decreasing next week and premiums fluctuating higher.
Overall, with copper prices remaining high, downstream restocking interest was lukewarm, and spot trades were mediocre.
