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| Copper |
Prices Climb for 14th Day Amid Low Supply; Downstream Demand Cools Slightly
Copper prices and premiums in Guangdong rose further today, extending a 14-day rally fueled by ongoing inventory declines and limited market arrivals. However, downstream purchasing sentiment has softened compared to the previous day as buyers show caution amid persistent price increases.
The average premium for copper cathode against the front-month contract in Guangdong increased to 225 yuan/mt, up 40 yuan/mt from the previous trading day. SX-EW copper premiums also climbed 40 yuan/mt to an average of 150 yuan/mt. Meanwhile, prices for both #1 copper cathode and SX-EW copper rose by 700 yuan/mt, reaching 77,230 yuan/mt and 77,155 yuan/mt respectively.
On the spot market, high-quality copper was quoted at a premium of 260 yuan/mt, standard-quality at 210 yuan/mt, and SX-EW copper at 160 yuan/mt as of 11:00. Traders remain bullish due to tight supply, but buyer resistance is emerging after consecutive days of rising prices.
Inventory in Guangdong has now fallen for 14 straight days, driven by restricted arrivals. Market participants are closely watching whether the inventory drawdown will persist ahead of the May Day holiday. Current sentiment suggests further declines are likely unless supply improves.
While suppliers maintain firm offers, downstream buyers appear more hesitant, signaling a possible short-term demand plateau if price pressure continues.
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