SMM News on June 25:
Data Summary:
As of Thursday, June 25, SMM copper inventories in major Chinese regions increased by 11,700 mt WoW to 206,000 mt, with total inventories up 75,900 mt YoY from 130,100 mt.
In detail, in Shanghai, falling copper prices boosted downstream procurement, turning inventory from an increase to a decline; in Jiangsu, as prices pulled back, end-use demand improved and inventory also declined; in Guangdong, downstream consumption slowed mid-year, while smelters rushed to ship goods and deliveries to warehouses increased, causing inventory to continue rising.
Looking ahead, on the supply side, arrivals of imported and domestic copper cathode are expected to increase in the short term; on the demand side, after a sharp decline in copper prices, downstream factories concentrated on settling prices and stockpiling. Currently, spot market supply is ample and purchasing sentiment is recovering, and next week, national copper social inventories are expected to maintain their destocking pace.
