As of April 24, the mainstream price in the south China market — SMM A00 aluminum (Foshan) was at a discount of 345 yuan/mt against the 2605 contract, while the mainstream price in the east China market — SMM A00 aluminum was at a discount of 130 yuan/mt against the 2605 contract. The price spread between the two regions had exceeded 200 yuan/mt, covering sea freight, short-haul transfer, and logistics costs, officially opening up the transshipment window between Guangdong and Shanghai...

As supply and demand for construction steel were not fully matched across different markets, regional supply-demand mismatches created price differentiation, which in turn drove the cross-regional circulation of steel resources. When the regional price spread gradient was appropriate, regions with surplus construction steel capacity and production often shipped excess resources out, thereby rebalancing construction steel resources across regions.

SMM, February 27: Guangdong Region: This week, premiums and discounts in the region showed a fluctuating upward trend, with continuously declining inventory being the main driver for rising premiums. As of Thursday, high-quality copper was quoted at a premium of 10 yuan/mt, up 60 yuan/mt WoW; standard-quality copper was quoted at a discount of 70 yuan/mt, up 50 yuan/mt WoW; hydro copper was quoted at a discount of 150 yuan/mt, up 80 yuan/mt WoW. The price spread between hydro copper and standard-quality copper narrowed due to reduced hydro copper supply. On Thursday, the price spread of standard-quality copper premiums and discounts between Shanghai and Guangdong was 60 yuan/mt higher in Guangdong, which was relatively small, leaving no room for cross-regional transfers. According to SMM statistics, as of Thursday, the total inventory in Guangdong was 67,700 mt, down 5,900 mt WoW, with warehouse warrants totaling 47,300 mt, down 4,400 mt WoW. Specifically, this week’s arrivals were 10,100 mt/week, down 10,100 mt WoW, below the annual average level (14,000 mt/week). It is reported that some smelters organizing shipments for export contributed to the decline in arrivals. Outflows from warehouses were 16,400 mt/week, above the annual average level (14,200 mt/week). With reduced arrivals, downstream users had to pick up more goods from warehouses. Looking ahead to next week, as smelters are expected to continue exporting, arrivals are likely to remain limited. On the consumption side, at the beginning of the month, enterprises with sufficient funds, combined with the pullback in copper prices, are expected to increase their procurement volume. Therefore, we believe that next week will see a scenario of reduced supply and increased demand, leading to a further decline in weekly inventory. However, the continuous outflow of a large number of warehouse warrants will suppress the rise in spot premiums. 》Subscribe to view SMM historical spot metal prices

SMM, February 20: Guangdong Region: This week, spot premiums in the region fluctuated at low levels. The persistently high inventory in Guangdong kept spot premiums suppressed, and the large outflow of warehouse warrants after delivery further constrained any upward movement in premiums. As of Thursday, high-quality copper was quoted at a discount of 50 yuan/mt, down by 80 yuan/mt WoW; standard-quality copper was quoted at a discount of 120 yuan/mt, down by 100 yuan/mt WoW; and hydro copper was quoted at a discount of 230 yuan/mt, down by 130 yuan/mt WoW. The increased supply of hydro copper widened its price spread with standard-quality copper. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong was 10 yuan/mt lower in Guangdong, which was relatively small and left no room for cross-regional transfers. According to SMM statistics, as of Thursday, the total inventory in Guangdong stood at 73,700 mt, up by 6,800 mt WoW, with warehouse warrants totaling 33,400 mt, an increase of 13,200 mt WoW. Specifically, this week’s arrivals were 20,200 mt/week, down by 9,600 mt WoW but significantly higher than the annual average level (14,000 mt/week). The active transfer to delivery warehouses by smelters at the beginning of the week was the main reason for the higher arrivals. Outflows from warehouses were 12,900 mt/week, below the annual average level (14,200 mt/week), as high copper prices constrained downstream enterprises' willingness to place orders, leading to a decline in weekly outflows. Looking ahead to next week, with no delivery impact, warehouse arrivals are expected to be lower than this week, while consumption is likely to decrease as enterprises reduce demand near month-end. Therefore, we anticipate a weak supply and demand scenario next week. However, arrivals are still expected to exceed consumption, leading to a continued increase in weekly inventory, though the growth rate is expected to slow compared to this week. 》Subscribe to view historical SMM metal spot prices

SMM, February 13: Guangdong Region: This week, spot premiums in this region showed a continuous upward trend. With downstream enterprises gradually resuming production and increasing demand, coupled with the SHFE approving an additional 10,000 mt of delivery warehouse capacity, the increase in deliverable goods reduced the actual circulating supply. Under these favorable conditions, spot premiums rose rapidly. As of Thursday, high-quality copper was quoted at a premium of 30 yuan/mt, up by 30 yuan/mt WoW; standard-quality copper was quoted at a discount of 20 yuan/mt, up by 310 yuan/mt WoW; hydro copper was quoted at a discount of 100 yuan/mt, up by 270 yuan/mt WoW. The increased supply of hydro copper widened its price spread with standard-quality copper. On Thursday, the price spread of standard-quality copper between Shanghai and Guangdong was 0 yuan/mt, indicating a relatively small spread with no room for cross-regional transfers. According to SMM statistics, as of Thursday, the total inventory in Guangdong stood at 66,900 mt, up by 14,500 mt WoW, with warehouse warrants totaling 33,400 mt, up by 13,200 mt WoW. Specifically, this week's arrivals were 29,900 mt/week, significantly higher than the annual average level (14,000 mt/week). Due to the relatively high inventory backlog at smelters and the significant spot premiums and discounts, suppliers were more inclined to send goods to warehouses. Outflows from warehouses were 17,000 mt/week, higher than the annual average level (14,200 mt/week). With downstream enterprises resuming production, demand also increased accordingly. According to our understanding, some copper rod enterprises have already reached full production this week. Looking ahead to next week, with the approach of delivery, warehouse arrivals are expected to continue increasing. After the Lantern Festival, downstream enterprises are expected to fully resume production, further boosting demand. Therefore, we believe that next week will see a robust supply and demand scenario, with weekly inventory continuing to rise, though the increase is expected to be smaller than this week. 》Subscribe to View SMM Historical Spot Metal Prices

[Weakening Demand, Decline in Premiums in Tianjin]: This week, spot premiums in Tianjin dropped continuously, down 60 yuan/mt WoW from the weekly average price. As of this Friday, domestic common brands posted premiums of 450-510 yuan/mt against the 2502 contract...

SMM January 2 News: Guangdong Region: This week, premiums and discounts in the region showed a bottom-out rebound trend. At the beginning of the week, suppliers faced year-end inventory clearance pressure, causing premiums to decline continuously. Entering the new year, suppliers stopped offloading goods and stood firm on quotes. As of Thursday, high-quality copper was quoted at a premium of 150 yuan/mt, down 200 yuan/mt WoW; standard-quality copper was quoted at a premium of 100 yuan/mt, down 200 yuan/mt WoW; hydro copper was quoted at a premium of 50 yuan/mt, down 190 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong was 30 yuan/mt higher in Guangdong, with a relatively small spread leaving no room for cross-regional transfers. According to SMM statistics, as of Thursday, the total inventory in Guangdong was 10,000 mt, an increase of 6,500 mt WoW. Specifically, this week's arrivals were 13,600 mt/week, an increase of 3,200 mt WoW, slightly below the annual average level (14,000 mt/week). Year-end inventory clearance by suppliers significantly boosted arrivals this week. Outflows from warehouses were 7,300 mt/week, a sharp decline of 6,300 mt WoW, far below the annual average level (14,200 mt/week), mainly due to production cuts by many copper rod enterprises at year-end. Looking ahead to next week, with suppliers completing inventory clearance this week, available shipments are expected to decrease next week, and arrivals are likely to decline. On the downstream consumption side, at the beginning of the month, downstream enterprises will have sufficient funds, and previously halted copper rod enterprises are expected to resume production, leading to an increase in total demand. Therefore, we believe that next week will see a scenario of reduced supply and increased demand, resulting in a decline in weekly inventory. 》Subscribe to View SMM Historical Spot Metal Prices