Amid mid-year settlements, suppliers slashed prices to sell, with overall trading sluggish [SMM South China Spot Copper Cathode Weekly Review]

July 2, 2026

Guangdong region: This week, premiums and discounts bottomed out and then rebounded. At the beginning of the week, due to mid-year financial constraints at enterprises, suppliers actively cut prices to monetize, but downstream buyers were reluctant to purchase, causing premiums to continue to decline. After the contract rollover, suppliers stopped cutting prices, and spot premiums surged. As of Thursday, high-quality copper was quoted at 50 yuan/mt, down 40 yuan/mt from last Thursday; standard-quality copper was quoted at a premium of 0 yuan/mt, down 20 yuan/mt from last Thursday; SX-EW copper was quoted at a discount of 60 yuan/mt, down 20 yuan/mt from last Thursday. On Thursday, the price spread for standard-quality copper premiums between Shanghai and Guangdong was 0 yuan/mt, which was relatively small and led to no inter-regional shipments. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses stood at 31,700 mt, up 11,100 mt from last Thursday, with warrant holdings totaling 5,800 mt, up 3,134 mt from last Thursday. Specifically, this week's warehouse arrivals were 20,900 mt/week, up 3,300 mt/week from last week, significantly above the annual average of 14,000 mt/week. Mid-year, smelters faced pressure to monetize and actively shipped out, and with downstream consumption weak, deliveries to warehouses increased. Warehouse withdrawals were 10,100 mt/week, down 2,200 mt from last week, below the annual average of 14,200 mt/week, mainly due to weak downstream consumption this week.

Looking ahead to next week, it is reported that arrivals of both domestic and imported copper will be limited, while downstream consumption is expected to gradually recover. Inventory is likely to decline again, and spot premiums are expected to gradually pick up.

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