SMM Jan. 15:
Spot prices of #1 copper cathode in Guangdong against the front-month contract were at a premium of 100-160 yuan/mt today, with the average premium at 130 yuan/mt, up 80 yuan/mt from the previous trading day. SX-EW copper was quoted at a premium of 10-30 yuan/mt, with the average premium at 20 yuan/mt, up 60 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 102,480 yuan/mt, down 1,060 yuan/mt from the previous trading day, while the average price of SX-EW copper was 102,370 yuan/mt, down 1,080 yuan/mt from the previous trading day.
Spot market: Inventory in Guangdong declined for two consecutive days, mainly due to reduced arrivals and increased shipments. As today was the delivery day, suppliers generally held back sales amid a significantly widened price spread between futures contracts, pushing up spot premiums. The procurement sentiment for copper cathode in Guangdong was 2.12 today, up 0.07 from the previous trading day, while the sales sentiment was 2.81, down 0.14 from the previous trading day (historical data can be queried 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 100 yuan/mt, and SX-EW copper at a premium of 20 yuan/mt. In addition, offers for the next-month contract were heard at a discount of 200 yuan/mt.
Overall, on the contract rollover day, the widened price spread between futures contracts prompted suppliers to actively hold prices firm, leading to higher spot premiums.
