[SMM Copper Anode Express] SMM expects that in June 2026, the overall operating rate of China copper anode enterprises will rise 0.18 percentage points MoM to 47.55%, with the operating rate of ore-derived copper anode enterprises expected to fall 3.53 percentage points MoM to 72.00%, and that of scrap-derived copper anode enterprises expected to rise 1.70 percentage points MoM to 37.56%. (Referring solely to the non-captive copper anode portion.)

[SMM Copper Anode Alert] In May 2026, the operating rate of China’s copper anode producers (SMM survey) was 47.37%, down 0.81 percentage points MoM. By raw material, the operating rate of ore-derived copper anode producers rose 0.57 percentage points MoM to 75.53%; that of scrap-derived copper anode producers fell 1.38 percentage points MoM to 35.86%. (Referring only to the non-captive copper anode portion.)

SMM June 5 update: Guangdong region: Premiums in this region showed a trend of bottoming out and rebounding this week. At the beginning of the week, premiums dropped sharply due to weak consumption. As copper prices declined, downstream restocking increased, and spot premiums stopped falling and rebounded. As of Thursday, high-quality copper was quoted at 30 yuan/mt, down 90 yuan/mt WoW; standard-quality copper was quoted at a discount of 30 yuan/mt, down 80 yuan/mt WoW; SX-EW copper was quoted at a discount of 80 yuan/mt, down 60 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong was 80 yuan/mt higher in Guangdong. The price spread was relatively small, and there was no cross-regional cargo transfer. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 22,800 mt, an increase of 1,300 mt WoW, with warrants totaling 5,800 mt, down 100 mt WoW. Specifically: Warehouse arrivals this week were 13,500 mt/week, an increase of 1,100 mt/week WoW, slightly below the annual average (14,000 mt/week); increased shipments from smelters were the main reason. Warehouse withdrawals were 12,100 mt/week, an increase of 1,100 mt WoW, below the annual average (14,200 mt/week). As the period straddled a month-end, the increase in downstream procurement volume was limited. Looking ahead to next week, as nearby smelters complete maintenance, supply is expected to increase. However, downstream consumption recovery remains limited, making it difficult for inventory to decline significantly, and spot premiums are expected to hover at lows. (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 not related to SMM.)

[SMM North China Copper Cathode Spot Market] After copper prices continued to rise, demand in north China was suppressed and showed weakness. The spot market exhibited a significant discount premium with sluggish trading. Suppliers saw inventory tending to accumulate, and there were expectations to ship to delivery warehouse.

[SMM North China Copper Cathode Spot Market] Consumption in the market showed weakness during the week, compounded by the approaching month-end period, downstream capital was constrained, putting spot premiums under pressure and weakening them, and spot trading activity was sluggish.

SMM News, May 28: Guangdong region: Premiums in this region continued to trend lower this week, mainly driven by increased arrivals and weak consumption. As of Thursday, high-quality copper was quoted at 120 yuan/mt, down 120 yuan/mt WoW; standard-quality copper was quoted at a premium of 50 yuan/mt, down 110 yuan/mt WoW; SX-EW copper was quoted at a discount of 20 yuan/mt, down 110 yuan/mt WoW. On Thursday, the price spread of standard-quality copper premiums between Shanghai and Guangdong showed Guangdong was 230 yuan/mt higher. The relatively small price spread, combined with weakening consumption in Guangdong recently and the fact that earlier southbound cargoes had not yet been fully consumed, meant no additional cargoes moved south. According to SMM statistics, as of Thursday, total inventory in Guangdong warehouses was 21,500 mt, up 1,200 mt WoW, with warrants totaling 5,900 mt, up 1,000 mt WoW. Specifically: warehouse arrivals this week were 12,400 mt/week, down 4,600 mt/week WoW, below the annual average (14,000 mt/week); maintenance at nearby smelters and reduced southbound cargoes were the main reasons. Warehouse withdrawals were 11,000 mt/week, down 2,700 mt/week WoW, below the annual average (14,200 mt/week). Production cuts at some enterprises toward the month-end were the primary cause of the notable decline in demand. Looking ahead to next week, as downstream enterprises resume production, demand is expected to increase accordingly, while supply is not expected to rise significantly. Inventory is expected to decline again next week, and premiums are expected to stop falling and rebound. (The above information is based on market data collection and comprehensive assessment by the SMM research team. The information provided in this article is for reference only. This article does not constitute direct investment research advice. Clients should make prudent decisions and not replace independent judgment with this information. Any decisions made by clients are not related to SMM.)