Rigid demand dominates consumption; copper social inventory continues destocking for five consecutive weeks [SMM Weekly Data]

SMM April 14 News:

Data Brief: As of Thursday, April 16, SMM copper inventories across major regions nationwide decreased 11.46% WoW, with total inventory up 49,400 mt YoY, marking five consecutive weeks of destocking.

The Shanghai market remained dominated by just-in-time procurement, with arrivals of imported copper staying stable. Domestic supply saw improved shipment enthusiasm after delivery completion, while arrivals decreased somewhat, and overall inventory continued its downward trend. In Jiangsu, downstream demand was steady and improving, with inventory showing a steady destocking trend. Although consumption in the Guangdong market weakened recently, limited arrivals remained the primary driver of inventory decline.

Looking ahead, supply side, imported copper arrivals are expected to maintain the previous pace, while domestic copper arrivals remain relatively low. Demand side, downstream enterprises are expected to mainly make just-in-time procurement and restock on an as-needed basis. Overall supply-demand pattern, the current market features tight supply and just-in-time procurement-driven consumption. Social inventory is expected to continue destocking next week, but the destocking pace is expected to slow down.