As of Friday June 9, SMM copper inventory across major Chinese markets stood at 109,400 mt, up 2,500 mt from Monday but down 1,700 mt from a week earlier. Inventories have fallen for five consecutive weeks.
Compared with Monday's data, the inventory in Shanghai and Guangdong increased, while that in other regions fell further. The total inventories decreased 3,000 mt from 112,400 mt in the same period last year. Inventories in Shanghai decreased 19,900 mt from the same period last year. The inventories in Guangdong were 15,100 mt higher than the same period last year, and those in Jiangsu were 600 mt higher.
In detail, the inventory in Shanghai added 13,600 mt to 61,100 mt because the arrival of imported copper increased. The inventory in Guangdong area increased by 400 mt to 32,000 mt compared with Monday due to large inflows of imported copper and sluggish consumption. In Jiangsu, the inventory continued to decline due to lower arriving shipments and strong consumption.
Shipments from smelters may increase before the delivery, and there has been no sharp drop in customs clearance of imported copper. Therefore, the total supply will rise next week. On the demand side, as copper prices continue to rise and the price spread between copper cathode and copper scrap widens, copper cathode consumption will fall. SMM expects supply to grow and demand to weaken next week. And inventory would increase.
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