Copper prices fell sharply, and users were reluctant to purchase more amid fears of further declines [SMM South China spot copper]

SMM, September 2:

Today in Guangdong, spot prices against the front-month contract for #1 copper cathode: high-quality copper was quoted at a premium of 260 yuan/mt, down 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 180 yuan/mt, down 10 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 110 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 108,665 yuan/mt, down 1,595 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,555 yuan/mt, down 1,595 yuan/mt from the previous trading day.

Spot market: Guangdong inventory has declined for 12 consecutive trading days and has now fallen to less than 10,000 mt. Encouraged by this, suppliers held prices firm aggressively in early trading, with standard-quality copper quoted at a premium of 220 yuan/mt. However, as copper prices pulled back significantly, downstream users worried that copper prices still had downside room, and their restocking enthusiasm was muted today. To secure shipments, suppliers had to lower prices, and spot premiums retreated after a rapid rise. Today, the purchasing sentiment for copper cathode in Guangdong was 2.51, down 0.08 from the previous trading day, while the shipment sentiment was 2.92, up 0.03 from the previous trading day (historical data can be queried in the database).

Overall, although inventory continued to decline, the sharp drop in copper prices made users wary of further declines and reluctant to purchase more, causing premiums to retreat after a rapid rise.