SMM January 15 News:
Guangdong Region: This week, premiums and discounts in the region showed a volatile upward trend. As copper prices pulled back, downstream restocking increased, and with the approach of the delivery month, the price spread between futures contracts widened, leading to higher purchasing enthusiasm among traders. Overall trading activity improved WoW. As of Thursday, high-quality copper was quoted at a premium of 160 yuan/mt, up 130 yuan/mt WoW; standard-quality copper was quoted at a premium of 100 yuan/mt, up 120 yuan/mt WoW; and SX-EW copper was quoted at a premium of 20 yuan/mt, up 100 yuan/mt WoW. On Thursday, the price spread for standard-quality copper premiums between Shanghai and Guangdong was 20 yuan/mt higher in Guangdong. The relatively small spread meant there was no inter-regional goods transfer. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 48,200 mt, an increase of 3,500 mt WoW. Total warrants amounted to 30,000 mt, an increase of 8,700 mt WoW. The main reason was suppliers shipping goods to warehouses for delivery ahead of the approaching delivery date. Specifically: Weekly warehouse arrivals this week were 19,200 mt/week, an increase of 4,000 mt/week WoW, higher than the annual average (14,000 mt/week). The primary reason was suppliers actively shipping to delivery warehouses ahead of the delivery date, which is also reflected in the significant increase in warrant volume. Weekly warehouse withdrawals were 13,900 mt/week, an increase of 6,300 mt/week WoW, slightly lower than the annual average (14,200 mt/week). The main reason for the increase in withdrawals was downstream enterprises gradually resuming production after the New Year's Day holiday.
Looking ahead to next week, demand is expected to increase after the pullback in copper prices, and suppliers are no longer actively shipping goods to warehouses. Inventory is forecast to experience a slight decline, with spot premiums fluctuating higher.
(The above information is based on market collection and comprehensive evaluation by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make decisions cautiously and not use this information to replace their own independent judgment. Any decisions made by clients are unrelated to SMM.)
