Inventory dropped, suppliers held prices firm, but downstream purchased cautiously [SMM South China spot copper]

SMM August 5:

Guangdong #1 copper cathode spot against the front-month contract: high-quality copper at 110 yuan/mt (up 10 yuan/mt), standard-quality copper at a premium of 30 yuan/mt (up 30 yuan/mt), SX-EW copper at a discount of 30 yuan/mt (up 30 yuan/mt). Guangdong #1 copper cathode averaged 106,990 yuan/mt (up 450 yuan/mt), SX-EW copper averaged 106,890 yuan/mt (up 460 yuan/mt).

Spot market: Guangdong inventory ended a two-day increase streak and declined again, mainly due to reduced arrivals; some smelters were reportedly preparing for export. With inventory drawdown, suppliers actively held prices firm, but constrained by sustained copper price rises, downstream users were cautious in purchasing, and spot trades were poor. Today, buying sentiment for electrolytic copper in Guangdong was at 2.40 (down 0.02), and selling sentiment at 2.81 (down 0.04) (Historical data can be viewed by logging into the SMM database).

Overall, with declining inventory, suppliers held prices firm, but cautious downstream procurement led to overall poor trades.