SMM November 27:
Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were at a premium of 80 yuan/mt to 160 yuan/mt, with the average premium at 120 yuan/mt, unchanged from the previous trading day. SX-EW copper was quoted at a discount of 10 yuan/mt to a premium of 30 yuan/mt, with the average premium at 10 yuan/mt, also flat from the previous trading day. The average price of #1 copper cathode in Guangdong was 87,060 yuan/mt, up 355 yuan/mt from the previous trading day, while the average price of SX-EW copper was 86,950 yuan/mt, also up 355 yuan/mt.
Spot market: Guangdong copper inventories continued to decline for the second consecutive day, mainly due to reduced arrivals. The persistent inventory decline prompted suppliers to maintain high premiums for sales, but downstream buyers showed weak restocking interest amid high premiums. Additionally, month-end financial constraints at enterprises further dampened consumption. Today, purchasing sentiment for copper cathode in Guangdong was 2.23, down 0.14 from the previous trading day, while sales sentiment was 2.91, up 0.07 (historical data available in the database). As of 11:00, high-quality copper against the front-month contract was quoted at a premium of 160 yuan/mt, standard-quality copper at a premium of 80 yuan/mt, and SX-EW copper at a premium of 10 yuan/mt.
Overall, inventories declined for two consecutive days, prompting suppliers to hold prices firm, keeping spot premiums at elevated levels.
