Copper Market Slumps on Delivery Day Amid Wide Price Spread
The copper market in Guangdong experienced a sluggish spot trade on delivery day due to a wide price spread between futures contracts. The front-month contract for standard-quality copper traded at a discount of 100 yuan/mt, down 50 yuan/mt from the previous trading day. This is despite reduced arrivals and lower inventory levels. Suppliers had to lower premiums to sell, which ultimately led to the front-month standard-quality copper trading at a discount.
The average price of #1 copper cathode in Guangdong was 107,445 yuan/mt, down 1,465 yuan/mt from the previous trading day. The purchasing sentiment for copper cathode in Guangdong was 2.43, down 0.14 from the previous trading day, and the shipment sentiment was 2.70, down 0.12 from the previous trading day.
The price spread between futures contracts is expected to improve tomorrow. This could lead to improved spot trade activity in the copper market.