[SMM Copper Anode] SMM expects the operating rate of China's copper anode enterprises to decline 2.58 percentage points MoM to 45.60% in May 2026, with ore-derived copper anode enterprises expected to see their operating rate decline 0.14 percentage points MoM to 74.82%; due to tight supply of tax-inclusive copper scrap, the operating rate of copper anode producers using scrap is expected to decline 3.58 percentage points MoM to 33.66%. (Referring only to the non-captive copper anode portion)

[SMM Copper Anode] In April 2026, the operating rate of China's copper anode enterprises was 48.18%, down 2.24 percentage points MoM. By raw material, the operating rate of ore-derived copper anode enterprises rose 3.45 percentage points MoM to 74.96%; the operating rate of copper anode producers using scrap fell 3.34 percentage points MoM to 37.24%. (Referring only to the non-captive copper anode portion)

[SMM Copper Anode News] Due to policy tightening, tax-inclusive copper scrap supply is tight, and scrap-derived copper anode supply in China has decreased. China's smelter inventory levels have been declining continuously since 2026. SMM smelter copper anode days of inventories in April 2026 were 7.04 days, down 0.32 days MoM.

Lead concentrate TCs remained generally stable this week. Some mining enterprises indicated that they had lowered zinc concentrate TCs in May due to market conditions and a sharp rise in sulphuric acid prices, but the quoted lead concentrate TCs for concentrates produced and sold during the same period were not adjusted. A few suppliers holding lead concentrates rich in zinc and copper adjusted the starting payable or payable indicator for copper and zinc contained in lead ore, but did not directly lower their lead concentrate TC quotations. Regarding imported ore prices, smelters maintained mainstream quotations of -$150 to -$130/dmt. Since late April, the SHFE/LME lead price ratio has continued to decline, losses on imported lead concentrates have widened, and smelters showed little enthusiasm for negotiating and purchasing. Regarding the silver payable indicator for lead concentrates, as silver prices have yet to break out of their sideways range and macro influences remain complex, the precious metals trend remains unclear. Both buyers and sellers remained cautiously on the sidelines, and the silver payable indicator for lead concentrates across various silver content levels remained stable.

SMM May 8 News: Data Brief: As of Friday, May 8, SMM copper inventories across major regions nationwide decreased by 1,400 mt WoW from the post-holiday level to 251,500 mt, with total inventories up 131,400 mt compared to the same period last year (120,100 mt). Specifically, in Shanghai, imported and domestic copper continued to flow into warehouses, with inventory maintaining a buildup trend; in Jiangsu, overall arrivals were relatively low, and coupled with gradually recovering consumption after the holiday, inventory continued to decline; in Guangdong, although domestic copper arrivals saw steady recovery, they remained at relatively low levels overall, and with downstream processing enterprises resuming normal operations and consumption after the holiday, regional inventory saw some destocking. Looking ahead, supply side, imported copper arrivals are expected to show incremental growth, and domestic copper arrivals are also expected to rebound overall; demand side, processing enterprises are gradually resuming production after the holiday, with marginal demand recovery, but under the suppression of elevated copper prices, downstream procurement and consumption remain mediocre. The current market presents a pattern of limited supply increases and slight consumption recovery, and China's copper cathode social inventory is expected to maintain a slight destocking trend next week.

SMM May 8 update: Guangdong region: Premiums in this region bottomed out and rebounded this week, mainly because downstream enterprises gradually resumed normal production, inventory shifted from increasing to decreasing, and suppliers held prices firm on shipments. As of Thursday, high-quality copper was quoted at 290 yuan/mt, down 30 yuan/mt WoW; standard-quality copper was quoted at a premium of 220 yuan/mt, down 20 yuan/mt WoW; SX-EW copper was quoted at 150 yuan/mt, down 30 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong showed Guangdong higher by 210 yuan/mt, with the spread widening again, drawing attention to whether cross-regional cargo transfers will occur going forward. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 16,300 mt, up 2,600 mt WoW, with warrants totalling 4,500 mt, down 701 mt WoW. Specifically: Weekly warehouse arrivals were 11,900 mt/week, below the annual average (14,000 mt/week); warehouse withdrawals were 11,200 mt/week, below the annual average (14,200 mt/week), showing a pattern of weak supply and demand during the Labour Day holiday. Looking ahead to next week, arrivals are not expected to increase significantly, but consumption is gradually recovering. Therefore, inventory is expected to remain at low levels, and spot premiums are also expected to stay elevated. (The above information is derived from market research and comprehensive assessment by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make prudent decisions and not replace independent judgment with this information. Any decisions made by clients are unrelated to SMM.)