China Copper Social Inventory Continues Destocking, Regional Trends Diverge Significantly [SMM Weekly Data]

SMM, June 15 dispatch:

Data highlights: As of Monday, June 15, SMM copper inventories in major regions across China continued destocking WoW, with total inventory reaching 207,700 mt, up 60,000 mt from 147,700 mt in the same period last year, and regional performance diverged.

Specifically, in Shanghai, the pace of warehouse withdrawals accelerated, but arrivals of both imported and domestic copper cathode remained low, leading to continued destocking. In Jiangsu, insufficient arrivals weighed on consumption, and inventory declined in tandem. In Guangdong, approaching delivery prompted concentrated arrivals from smelters, while sluggish weekend consumption pushed inventory buildup.

Market outlook: In the near term, arrivals of imported copper and domestic copper cathode are expected to stay low, keeping overall market supply tight. On the demand side, copper prices climbed back to high levels, curbing downstream procurement appetite. Survey data indicates that this week, the operating rate of copper cathode rod is projected to rise to 68.36%, up 0.89 percentage point WoW. Considering supply-demand dynamics, short-term market supply will remain tight while demand sticks to just-in-time procurement; China's domestic copper social inventory is expected to continue destocking next week.