China's Mainstream Regions Saw Significant Destocking of Copper Social Inventory This Week [SMM Weekly Data]

SMM June 4 News:

Data Brief: As of Thursday, June 4, SMM copper inventories across major regions nationwide decreased by 10,900 mt WoW to 234,300 mt, with total inventory up 85,500 mt compared to the same period last year (148,800 mt).

Specifically, arrivals of both imported and domestic copper in Shanghai decreased somewhat, coupled with a slight improvement in downstream consumption, driving destocking in the Shanghai region; in Jiangsu, inflows and outflows were balanced with relatively small overall changes; in Guangdong, reduced arrivals primarily drove a slight inventory drawdown as well.

Looking ahead, short-term arrivals of both imported and domestic copper are expected to remain tight; demand side, copper price pullbacks are expected to boost downstream restocking willingness, with just-in-time procurement recovering marginally. Overall, the spot market features tight supply and slightly improved demand, and China's social copper inventories are expected to see a slight inventory buildup next week.