Copper Prices Rise in Guangdong Amid Declining Spot Premiums

Copper prices in Guangdong rose significantly on July 27, but weak downstream restocking interest led to declining spot premiums. The average price of Guangdong #1 copper cathode increased by 275 yuan/mt to 105,360 yuan/mt, while SX-EW copper averaged 105,270 yuan/mt, up 270 yuan/mt from the previous trading day.

The spot market saw inventory rise due to increased arrivals and weakening consumption. Suppliers lowered their offers in response to higher inventory and rising prices, causing premiums to decline throughout the session. Standard-quality copper was quoted at a premium of 80 yuan/mt initially but eventually fell to 50 yuan/mt as suppliers cut prices.

The purchasing sentiment index for copper cathode in Guangdong stood at 2.51, down from the previous trading day's index, while the shipment sentiment index rose to 2.89, an increase of 0.09 (historical data can be accessed via SMM's database). With higher inventory and rising prices dampening downstream restocking interest, spot premiums continued to decline.