Decline in arrivals and restocking increase amid lower copper prices drive spot premiums sharply higher [SMM South China Copper Cathode Spot Weekly Review]

Jun 2026
Guangdong Region: Premiums in the region trended persistently lower this week, with increased arrivals and demand weakened by production cuts downstream during the Dragon Boat Festival. As of Thursday, high-quality copper was quoted at 200 yuan/mt, down 40 yuan/mt WoW; standard-quality copper was quoted at a premium of 140 yuan/mt, down 40 yuan/mt WoW; and SX-EW copper was quoted at a premium of 80 yuan/mt, down 40 yuan/mt WoW. The price spread for standard-quality copper premiums between Shanghai and Guangdong stood at Guangdong being higher by 160 yuan/mt on Thursday, a relatively small spread that triggered no interregional cargo transfers. SMM data indicated that as of Thursday, total inventory in Guangdong warehouses was 15,400 mt, up 3,000 mt WoW, with warrants totaling 3,100 mt, down 1,400 mt WoW. In detail: weekly warehouse arrivals were 17,700 mt, up 10,000 mt WoW, surpassing the annual average of 14,000 mt/week; smelter shipments increased early in the week ahead of contract expiry. Warehouse withdrawals were 14,300 mt, down 4,000 mt WoW, in line with the annual average of 14,200 mt/week, as production cuts downstream during the Dragon Boat Festival curtailed demand.

Looking ahead to next week, post-holiday downstream demand is expected to gradually recover while the supply side remains tight; inventories are likely to decline again, with premiums expected to trend higher once more.

(The above information is derived from market data collected and assessed comprehensively by the SMM research team. The information provided is for reference only. This article does not constitute direct investment, research, or decision-making advice. Clients should exercise prudent judgment and not rely on this as a substitute for independent decision-making. Any decisions made by clients are unrelated to Shanghai Metals Market.)