The large Shanghai-Guangdong price spread led to cross-regional cargo transfers, pushing the spot premium in South China up passively. [SMM South China Copper Cathode Spot Weekly Review]

Jul 23, 2026
Guangdong region: This week, premiums in the region trended higher amid choppy trade, mainly driven by a rapid drop in inventory (not due to consumption but because metal was transferred to east China). As of Thursday, high-quality copper was quoted at 200 yuan/mt, up 20 yuan/mt from last Thursday; standard-quality copper premiums stood at 140 yuan/mt, up 40 yuan/mt from last Thursday; and SX-EW copper premiums were at 80 yuan/mt, up 40 yuan/mt from last Thursday. On Thursday, the Shanghai-Guangdong price spread for standard-quality copper premiums stood at 350 yuan/mt in favor of Shanghai. The wide spread prompted inter-regional shipments this week. According to SMM data, as of Thursday, total inventories in Guangdong warehouses stood at 15,200 mt, down 7,500 mt from last Thursday, while warrant holdings totaled 4,100 mt, down 600 mt from last Thursday. In detail: Weekly arrivals reached 14,900 mt/week, up 800 mt/week WoW, slightly above the annual average (14,000 mt/week). Arrivals were relatively normal this week, with both domestic and imported copper arriving. Warehouse withdrawals amounted to 22,400 mt/week, up 6,700 mt/week WoW, significantly above the annual average (14,200 mt/week). The main reason was the wide Shanghai-Guangdong spread, which led to substantial cargo transfers from warehouses to the east China market, while local actual consumption was weak.

Looking ahead to next week, we understand that both imported and domestic copper will arrive normally. Consumption is expected to remain weak due to elevated copper prices, and the key focus will be whether inter-regional shipments persist. Inventories are likely to stay low, with little chance of a significant increase, and spot premiums are expected to remain at high levels.

(The above information is based on market data collection and a comprehensive assessment by the SMM research team. It is provided for reference only and does not constitute direct investment advice. Clients should make decisions prudently and not rely solely on this information as a substitute for independent judgment. SMM is not responsible for any decisions made by clients.)