Copper Inventories in Major Chinese Markets Increased This Week

As of Friday July 7, SMM copper inventory across major Chinese markets stood at 120,300 mt, up 15,300 mt from Monday and 21,200 mt from a week earlier. Inventories have grown for two consecutive weeks. Compared with Monday, the inventory fell across various regions and only Shanghai and Tianjin saw inventory growth.

The total inventories increased 2,200 mt from the same period last year. Inventories in Shanghai increased 7,100 mt from the same period last year. The inventories in Guangdong were 2,600 mt lower than the same period last year, and those in Jiangsu were 2,200 mt lower.

In detail, the inventory in Shanghai added 18,400 mt to 87,100 mt. Inventory in Guangdong decreased by 2,600 mt to 25,200 mt compared with Monday.

There will be a large volume of imported copper entering the domestic market after customs clearance next week, but the volume will be lower than this week. Shipments from domestic smelters will increase. Total copper will change little. The total supply will be flat compared with this week. However, downstream consumption may weaken, mainly due to the large price spread between the SHFE front-month and next-month copper contracts and poor orders. SMM believes that next week, inventory will increase further.

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