Chinese copper cathode prices up
2024-03-22 11:28:13 [Print]
BEIJING (Asian Metal) 22 Mar 24 - As a result of the interest rate reduction decision made by FED, prices for copper cathode in the Chinese futures market rise continuously, but spot demand from downstream copper rod consumers remains inactive as they just wait on the sidelines with reluctance to purchase. The domestic copper cathode spot market stays in a weakly balanced state today with mainstream prices rising slightly by RMB300/t (USD41.59/t) to RMB72,800-73,000/t (USD10,093-10,118/t).
A producer in Shandong said, "Today we sell 1,500t of copper cathode at about RMB72,900/t (USD10,104/t), a price which is RMB260/t (USD36.04/t) lower than that in the futures market. We still adopt a zero-inventory strategy now, trying to conclude deals as more as possible with no inventory in hand. Prices in the futures market declined yesterday, but our price for over 2,000t of the material was still around RMB72,300/t (USD10,021/t), about RMB200/t (USD27.72/t) lower than the futures price." The producer further noted that the domestic copper cathode spot market sees higher price today but with enquiries declining from 7-8 yesterday to 3-4, adding that the spot market in Shandong is generally in a oversupply state as most local producers mainly sign long-term orders.
With an annual production capacity of 700,000, the producer expects to have an output of around 40,000t in March, unchanged MoM.
"Copper cathode price of SHFE stands at a high level today, but owing to limited enquiries, our price for about 150t of the material is only RMB73,000/t (USD10,118/t) or so, RMB130/t (USD18.02/t) lower than the futures price. We sold 200t of the material at RMB72,400t (USD10,035/t) yesterday, but still hold 2,000t of stocks at present. Given sluggish economy, insiders are waiting downstream consumption market to recover," a Jiangxi-based producer disclosed.
With an annual production capacity of 220,000t, the producer expects to produce 18,000t or so in March, up by about 10,000t from January.
A producer in Shandong said, "Today we sell 1,500t of copper cathode at about RMB72,900/t (USD10,104/t), a price which is RMB260/t (USD36.04/t) lower than that in the futures market. We still adopt a zero-inventory strategy now, trying to conclude deals as more as possible with no inventory in hand. Prices in the futures market declined yesterday, but our price for over 2,000t of the material was still around RMB72,300/t (USD10,021/t), about RMB200/t (USD27.72/t) lower than the futures price." The producer further noted that the domestic copper cathode spot market sees higher price today but with enquiries declining from 7-8 yesterday to 3-4, adding that the spot market in Shandong is generally in a oversupply state as most local producers mainly sign long-term orders.
With an annual production capacity of 700,000, the producer expects to have an output of around 40,000t in March, unchanged MoM.
"Copper cathode price of SHFE stands at a high level today, but owing to limited enquiries, our price for about 150t of the material is only RMB73,000/t (USD10,118/t) or so, RMB130/t (USD18.02/t) lower than the futures price. We sold 200t of the material at RMB72,400t (USD10,035/t) yesterday, but still hold 2,000t of stocks at present. Given sluggish economy, insiders are waiting downstream consumption market to recover," a Jiangxi-based producer disclosed.
With an annual production capacity of 220,000t, the producer expects to produce 18,000t or so in March, up by about 10,000t from January.
