Inventory dropped for 8 consecutive days, suppliers took the chance to hold prices firm; premiums rose continuously this week [SMM South China Copper Cathode Spot Weekly Review]

SMM News, August 27, 2026:

In Guangdong, premiums trended higher in a volatile way this week. Although copper prices continued to rise, a shrinking available supply in the market encouraged suppliers to sell at higher prices, pushing premiums steadily up. By Thursday, high-quality copper was quoted at a premium of 260 yuan/mt, up 80 yuan/mt from last Thursday; standard-quality copper at 170 yuan/mt, up 60 yuan/mt; and SX-EW copper at 110 yuan/mt, up 70 yuan/mt. On Thursday, the price spread between standard-quality copper premiums in Shanghai and Guangdong was 210 yuan/mt higher in Shanghai. Despite the wide spread, no inter-regional shipments occurred. Attention will be paid to whether the spread widens further next week; if so, inter-regional shipments could materialize. According to SMM data, as of Thursday, total inventory in Guangdong warehouses stood at 13,300 mt, down 7,100 mt from last Thursday, with warrants at 2,400 mt, a decline of 7,000 mt from last Thursday. Specifically, warehouse arrivals this week were 11,500 mt/week, down 7,200 mt/week from the previous week, well below the annual average of 14,000 mt/week. Both imported and domestic copper arrivals were limited. Warehouse withdrawals came in at 18,400 mt/week, up 4,600 mt/week from the previous week, above the annual average of 14,200 mt/week. As a large processing enterprise resumed normal production after two weeks of production cuts, market demand for copper cathode increased, driving sustained growth in withdrawals.

Looking ahead to next week, arrivals are expected to increase WoW as smelters face month-end inventory clearance pressure. However, downstream consumption is likely to weaken under the dual pressure of high copper prices and tighter financial conditions at month-end. As a result, inventories may rise again, and premiums are expected to pull back.

(The above information is based on market data collection and a comprehensive assessment by the SMM research team. The information provided herein is for reference only. This article does not constitute direct investment advice. Clients should exercise caution and not rely solely on this information to replace independent judgment. Any decisions made by clients are unrelated to SMM.)