Guangdong Copper Market Hits New Low as Spot Premiums Soar

The copper market in Guangdong is experiencing a severe supply shortage, driving up spot premiums. According to the Shanghai Metals Market, spot premiums for #1 copper cathode against the front-month contract rose significantly, with high-quality copper quoted at a premium of 320 yuan/mt, up 60 yuan/mt from the previous trading day. Standard-quality copper was quoted at a premium of 220 yuan/mt, while SX-EW copper was quoted at a premium of 160 yuan/mt.

The average price of #1 copper cathode in Guangdong reached 109,445 yuan/mt, up 780 yuan/mt from the previous trading day. The spot market is struggling with inventory levels hitting new lows for the year, with suppliers taking advantage of the tight supply to hold prices firm and drive up premiums.

With a persistent decline in inventory and limited available supply, downstream users were forced to accept high premiums. As a result, the procurement sentiment for copper cathode in Guangdong rose to 2.62, while the shipment sentiment was 2.82.