SMM July 9:
Data Brief: As of Thursday, July 9, SMM copper inventories in major regions nationwide decreased by 34,900 mt WoW from last Thursday to 165,000 mt, with the total inventory up 21,300 mt YoY from 143,700 mt.
Specifically, in Shanghai, arrivals of both imported and domestic copper decreased; coupled with the approach of the 9th typhoon "Bavi" (super typhoon level) this year, which prompted concentrated cargo pick-up by downstream users, regional inventory destocked sharply. Similarly affected by the typhoon, Jiangsu saw a tightening in domestic copper arrivals, and inventory continued its downward trend; in Guangdong, transportation was hindered by floods affecting some road sections in Guangxi, leading to a decline in arrivals, and inventory also pulled back.
Looking ahead, supply side, in the short term, imported copper arrivals are expected to be low and domestic arrivals to remain low; demand side, overall, it is still in the traditional consumption off-season, with enterprises making just-in-time procurement. Currently, the spot copper market is tight overall, dominated by just-in-time procurement, and it is expected that next week, the nationwide copper social inventory will continue its destocking trend.
