Guangdong Spot Copper Premiums Plummet as Demand Slumps

Guangdong's spot copper market saw a sharp decline in premiums today, according to SMM. The high-quality copper was quoted at a premium of 120 yuan/mt, down 130 yuan/mt from the previous trading day. In contrast, standard-quality copper was quoted at a discount of 50 yuan/mt, down 200 yuan/mt from the previous day.

The average price of #1 copper cathode in Guangdong was 108,910 yuan/mt, down 565 yuan/mt from the previous trading day. The spot market saw subdued demand due to higher arrivals and a wide price spread between futures contracts, which exceeded 800 yuan at one point.

Suppliers had to keep cutting prices to sell as downstream purchasing interest was low. Even standard-quality copper was quoted at parity in early trading, but few buyers were present.