SMM, July 27:
In Guangdong today, #1 copper cathode spot premiums against the front-month contract were reported at 50–110 yuan/mt, with an average premium of 80 yuan/mt, down 85 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 20 yuan/mt to parity, averaging a discount of 10 yuan/mt, down 90 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 105,360 yuan/mt, up 275 yuan/mt from the previous trading day, while SX-EW copper averaged 105,270 yuan/mt, up 270 yuan/mt.
Spot market: Guangdong inventory rose significantly after the weekend, mainly due to increased arrivals and weakening consumption. With higher inventory and rising copper prices, suppliers eager to sell actively lowered their offers, causing premiums to continuously decline during the day. In early trading, standard-quality copper was quoted at 80 yuan/mt, but few buyers emerged. Suppliers were forced to cut prices, and final transaction levels reached 50 yuan/mt. The purchasing sentiment index for copper cathode in Guangdong stood at 2.51, down 0.05 from the previous trading day, while the shipment sentiment index was 2.89, up 0.09 (historical data can be accessed via our database). As of 11:00 a.m., high-quality copper against the front-month contract was reported at 110 yuan/mt, standard-quality copper at a premium of 50 yuan/mt, and SX-EW copper at a discount of 10 yuan/mt.
Overall, rising copper prices and inventory build-up dampened downstream restocking interest, pushing spot premiums lower throughout the session amid thin trading.
![China's Copper Social Inventory Slightly Accumulated, End-Use Consumption Remained Weak [SMM Weekly Data]](https://imgqn.smm.cn/usercenter/hsjMg20251217171712.jpg)
