Guangdong Copper Prices Plummet as Weak Demand Forces Suppliers to Slash

The copper market in Guangdong saw significant changes at the end of July, as weak downstream consumption forced suppliers to lower their prices. According to SMM's South China Spot Copper data, high-quality copper was quoted at 120 yuan/mt, down 30 yuan/mt from the previous trading day. Standard-quality copper and SX-EW copper also saw price drops, with premiums pulling back significantly.

The spot market in Guangdong saw a decline in inventory for three consecutive days, primarily due to reduced arrivals rather than increased sales. This was largely driven by weak downstream consumption, particularly near month-end when many enterprises cut production. As a result, suppliers were forced to slash prices, leading to a notable decline in spot premiums.

The purchasing sentiment for copper cathode in Guangdong decreased to 2.41, down 0.09 from the previous trading day, while the selling sentiment dropped to 2.90, down 0.06. The average price of Guangdong #1 copper cathode reached 105,790 yuan/mt, up 335 yuan/mt from the previous trading day.