Copper prices continued to rise, downstream consumption was weak, spot trades were sluggish [SMM South China Copper Cathode Spot Weekly Review]

Published: Aug 6, 2026 15:11

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Aug 6, 2026

Guangdong region: This week, premiums in the region consolidated at lows. Spot premiums had rebounded slightly due to consecutive declines in inventory but subsequently edged lower again as copper prices continued to rise, weakening downstream demand. As of Thursday, high-quality copper was quoted at 90 yuan/mt, down 60 yuan/mt WoW; standard-quality copper was at a premium of 10 yuan/mt, down 70 yuan/mt WoW; and SX-EW copper was at a discount of 30 yuan/mt, down 50 yuan/mt WoW. As of Thursday, the premium spread for standard-quality copper between Shanghai and Guangdong stood with Shanghai higher by 30 yuan/mt. The relatively small price difference meant no cross-regional shipments this week. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses stood at 18,900 mt, up 1,900 mt WoW, while total warrants reached 4,300 mt, up 400 mt WoW. Specifically, weekly arrivals into warehouses were 11,800 mt/week, up 900 mt/week WoW, below the annual average of 14,000 mt/week, with the decline in domestically produced copper arrivals being the main reason. Warehouse withdrawals were 9,900 mt/week, edging up 100 mt/week WoW, far below the annual average of 14,200 mt/week. As copper prices continued to rise and hit recent highs, downstream processing enterprises generally held a wait-and-see stance, with subdued purchasing appetite.

Looking ahead to next week, based on our understanding, arrivals of both imported and domestically produced copper are expected to be relatively low, and some smelters have plans to export. Meanwhile, downstream consumption is expected to be slightly better than this week. As a result, inventory may edge down, and premiums may edge up.

(The above information is based on market collection and comprehensive assessment by the Shanghai Metals Market research team. The information provided is for reference only. This article does not constitute direct investment, research, or decision-making advice. Clients should make decisions with caution and not use this as a substitute for independent judgment. Any decisions made by clients are unrelated to Shanghai Metals Market.)

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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