Guangdong Copper Prices Rise Despite Weak Demand

Copper prices have continued to rise in the Guangdong region of China, but this has not sparked strong demand from downstream consumers. Spot trades were sluggish this week, with high-quality copper quoted at 90 yuan/mt on Thursday, down 60 yuan/mt compared to last week. Standard-quality copper was priced at a premium of 10 yuan/mt, down 70 yuan/mt WoW.

The inventory levels in Guangdong warehouses have increased slightly, with total stock standing at 18,900 mt as of Thursday. This is up 1,900 mt from the previous week, while total warrants reached 4,300 mt, an increase of 400 mt WoW. However, warehouse withdrawals were only 9,900 mt/week this week, far below the annual average.

Looking ahead to next week, market analysts predict that arrivals of both imported and domestically produced copper will be relatively low. Some smelters have plans to export, which could further impact inventory levels. Despite rising prices, downstream consumption is expected to improve slightly in the coming week, potentially leading to a decrease in inventory and an increase in premiums.