China's Copper Social Inventory Slightly Accumulated, End-Use Consumption Remained Weak [SMM Weekly Data]

SMM, July 27:

Data Summary: As of Monday, July 27, China's SMM copper cathode social inventory across major regions rose 5,300 mt WoW to 117,200 mt, down 3,100 mt from 120,300 mt in the same period last year, with all regions showing expectations of inventory buildup.

In detail, Shanghai saw increased arrivals of domestic copper cathode and minor replenishments of imported cargo, coupled with weak downstream demand, leading to inventory accumulation. Jiangsu saw limited and relatively small inventory changes. Guangdong, with higher arrivals but lackluster end-use consumption, pushed inventories higher.

Market outlook: Supply side, short-term arrivals of domestic and imported copper cathode recovered slightly, marginally easing the tightness in market cargo availability. Demand side, copper prices fluctuating at highs suppressed enterprise production enthusiasm, with downstream just-in-time procurement willingness remaining weak. Survey showed that the copper cathode rod operating rate this week was expected to fall to 58.89%, down 3.67 percentage points WoW. Overall supply-demand pattern, China's spot supply marginally loosened, end-user procurement remained persistently sluggish, and the national copper cathode social inventory was expected to continue an inventory buildup trend this week.