This week, copper social inventories saw a slight buildup, as off-season high prices dragged on downstream demand [SMM Weekly Data].

SMM July 23 News:

Data Summary: As of Thursday, July 23, SMM copper inventories across major Chinese regions fell by 14,200 mt WoW from last Thursday to 109,200 mt, but rose by 1,900 mt from Monday. Total inventories were 5,000 mt lower than the 114,200 mt recorded in the same period last year.

Specifically, Shanghai was affected by arrivals from south China and replenishment from imported sources, coupled with sluggish downstream purchases, leading to a slight inventory accumulation. In Jiangsu, downstream demand remained weak and inventories continued to build up. In Guangdong, arrivals stayed at low levels, and some warrants were transferred to east China, with regional inventories continuing to destock.

Looking ahead, on the supply side, imported supply is expected to improve slightly in the short term, easing domestic supply pressure compared to the earlier period. On the demand side, the market is currently in the traditional consumption off-season, and high copper prices are weighing on sentiment, keeping downstream enterprises' purchase willingness subdued. Spot copper availability has become somewhat ample, and overall market trading is sluggish. National copper social inventories are expected to see a slight buildup next week.