Copper social inventory consolidated during the week, with total inventory lower YoY [SMM weekly data]

SMM, July 30 –

Data Briefing: As of Thursday, July 30, SMM national mainstream copper social inventory increased by 2,700 mt WoW to 111,900 mt, but decreased by 800 mt from this Monday’s level. Total inventory was down 7,400 mt YoY from 119,300 mt in the same period last year.

Specifically, arrivals and warehouse withdrawal demand in Shanghai and Jiangsu weakened simultaneously, with both supply and demand sides lacking significant growth. Inventory maintained a slight destocking trend. In Guangdong, arrivals contracted somewhat, but downstream consumption recovery was insufficient, and persistently weak demand led to a slight inventory buildup. Overall, regional inventories diverged this week, with limited overall fluctuations.

Looking ahead, on the supply side, short-term import supply improved, and domestic supply pressure eased from earlier levels. On the demand side, the market was in the traditional consumption off-season, and coupled with high copper prices, downstream processing enterprises mostly maintained just-in-time procurement, with weak willingness to stockpile proactively. At present, spot copper supply was somewhat ample, and overall market trading was sluggish. Based on supply and demand conditions, national copper social inventory is expected to see a slight buildup next week.