Copper Social Inventory in China's Major Regions Continued Inventory Buildup Trend Over the Weekend [SMM Weekly Data]

SMM May 25 News:

Data Brief: As of Monday, May 25, SMM copper inventories in major regions nationwide increased by 2,300 mt WoW to 245,200 mt, up 105,500 mt compared to the same period last year (139,700 mt).

Specifically, imported sources in Shanghai increased somewhat, though domestic arrivals contracted simultaneously. Combined with copper prices remaining at elevated levels, downstream enterprises showed notably weakened willingness to purchase. Warehouse inflows and outflows over the weekend maintained a steady pace, and regional inventory levels remained largely unchanged. In Jiangsu, influenced by the rising trend in copper prices, downstream procurement demand was generally weak, but local domestic copper arrivals pulled back somewhat, leading to slight destocking in the region. In Guangdong, the end-use consumer market performed sluggishly, becoming the core factor behind continuous inventory accumulation, with inventory levels continuing to climb.

Market outlook: Supply side, short-term import arrivals decreased somewhat, while domestic source arrivals increased, gradually easing the overall tight supply situation. Demand side, downstream enterprises generally adopted a wait-and-see attitude amid elevated prices, with market demand remaining soft. According to the survey, the copper cathode rod operating rate is expected to decline to 61.61% this week, down 0.36 percentage points WoW. Considering overall supply-demand performance, supply is marginally loosening while demand remains weak, and social inventory is highly likely to continue its inventory buildup trend in the short term.