Weak Consumption, Inventory Gains for 6th Straight Week, Spot Premiums Tumble [SMM South China Copper Cathode Spot Weekly Review]

Jun 25, 2026

Guangdong Region: This week, premiums in the region fell steadily. Despite a continuous rebound in copper prices, downstream restocking enthusiasm remained muted, mainly due to production cuts at processing enterprises affected by mid-year settlements, as also reflected by a six-session consecutive increase in inventory. As of Thursday, high-quality copper stood at 90 yuan/mt, down 110 yuan/mt WoW; standard-quality copper stood at a premium of 10 yuan/mt, down 120 yuan/mt WoW; and SX-EW copper stood at a discount of 40 yuan/mt, down 120 yuan/mt WoW. On Thursday, the price spread for standard-quality copper premiums between Shanghai and Guangdong stood at Guangdong higher by 90 yuan/mt, a relatively small spread that resulted in no trans-regional shipments. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 20,600 mt, up 5,800 mt WoW, with warrants totaling 2,700 mt, up 274 mt WoW. In detail: This week, warehouse arrivals reached 17,500 mt/week, down 200 mt/week WoW but well above the annual average (14,000 mt/week). Smelters were actively selling under mid-year cash realization pressure, and weak downstream consumption led to increased deliveries to warehouses. Warehouse withdrawals were 12,300 mt/week, down 2,000 mt WoW and below the annual average (14,200 mt/week), with poor downstream consumption being the main cause this week.

Looking ahead to next week, approaching the mid-year settlement, arrivals are expected to remain abundant while consumption declines; inventory is expected to rise first and then fall, while spot premiums are expected to stay low before staging a notable rebound by the end of next week.

(The above information is derived from market data collection and comprehensive assessment by the SMM research team. The information provided herein is for reference only. It does not constitute direct investment research advice, and clients should make prudent decisions without using it as a substitute for independent judgment. Any decisions made by clients are unrelated to Shanghai Metals Market.)