SMM June 23 report:
Today, in Guangdong, spot #1 copper cathode was quoted at a premium of 20 yuan/mt to 100 yuan/mt against the front-month contract, with an average premium of 60 yuan/mt, down 30 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 40 yuan/mt to 20 yuan/mt, with an average discount of 30 yuan/mt, down 30 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,295 yuan/mt, down 160 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,205 yuan/mt, down 160 yuan/mt from the previous trading day.
Spot market: After the weekend, inventory in Guangdong continued to decline, marking the fifth consecutive day of decline. The main reasons were the low arrival of goods and increased outflows from warehouses. Although copper prices and inventory both fell today, as the year-end approaches, some suppliers have a need to liquidate their holdings and are actively reducing prices to sell, leading to a continued decline in premiums today. As of 11 a.m., high-quality copper for the front-month contract was quoted at 100 yuan/mt, standard-quality copper at a premium of 20 yuan/mt, and SX-EW copper at a discount of 30 yuan/mt.
Overall, despite suppliers actively reducing prices to sell, overall trading activity remains average, mainly due to the market’s bearish outlook for the future.
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(Source)