Copper prices remain high, downstream restocking interest is low, and spot premiums are flat from yesterday [SMM South China Spot Copper]

SMM, July 23:

Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper at a premium of 200 yuan/mt, unchanged from the previous trading day; standard-quality copper at a premium of 140 yuan/mt, unchanged; SX-EW copper at a premium of 80 yuan/mt, unchanged. Guangdong #1 copper cathode averaged 106,300 yuan/mt, down 170 yuan/mt from the previous trading day, while SX-EW copper averaged 106,210 yuan/mt, also down 170 yuan/mt.

Spot market: Today, Guangdong inventory continued to decline, hitting a new recent low, mainly due to reduced arrivals and increased warehouse withdrawals, with withdrawals mostly shipped to east China rather than consumed locally. As copper prices remained elevated, downstream restocking appetite was thin, and suppliers could only hold quotes at yesterday’s levels, struggling to keep prices firm for shipments. Overall trading sentiment was subdued. Guangdong’s copper cathode buying sentiment was 2.50, down 0.02 from the previous trading day, and selling sentiment was 2.85, down 0.02 (historical data can be queried in the database).

Overall, high copper prices dampened downstream restocking interest, and spot premiums stayed flat with yesterday.