Guangdong Copper Market Sees Decline in Premiums and Prices

The copper market in Guangdong saw a decline in premiums and copper prices as of August 10, according to data from SMM South China Spot Copper. The high-quality copper spot price was at a premium of 100 yuan/mt, down 60 yuan/mt from the previous trading day. Standard-quality copper and SX-EW copper were also at parity with the front-month contract, each down 60 yuan/mt from the previous day.

The average price for Guangdong #1 copper cathode was 107,945 yuan/mt, down 410 yuan/mt from the previous trading day. The same decrease in price applied to SX-EW copper, with an average price of 107,835 yuan/mt.

Increased arrivals of imported copper contributed to rising inventories in Guangdong after the weekend. Suppliers lowered prices to stimulate sales as a result, causing spot premiums to drop significantly. However, downstream users' purchasing enthusiasm increased compared to last Friday, leading to improved overall trading sentiment.