Copper Inventory in Major Chinese Markets Dropped This Week and Declines to Continue

SHANGHAI, Apr 21 (SMM) – As of Friday April 21, SMM copper inventory across major Chinese markets stood at 183,500 mt, down 8,100 mt from April 17 and down 6,600 mt from a week earlier. Compared with Monday's data, the inventories across various regions were mixed this week. Shanghai, Zhejiang and Tianjin contributed to most of the inventory declines, while inventories in other regions increased.

The total inventories increased 56,200 mt from 127,300 mt in the same period last year. The inventory in Shanghai added 27,300 mt from the same period last year. The inventories were 13,800 mt higher than the same period last year, those in Jiangsu were 8,500 mt higher, and those in Zhejiang were 4,000 mt higher.

The inventory in Shanghai decreased by 8,200 mt to 103,700 mt compared with Monday. Continuously falling copper prices incentivised downstream purchasing, accelerating inventory declines. Meanwhile, smelters shipments to warehouses decreased after the delivery of the April contract.

The inventory in Guangdong increased 100 mt from Monday to 52,700 mt. This week, the inventory in Guangdong grew before falling. The reason for the slight decline in inventory in Zhejiang is the decrease in local registered warrants.

The amount of imported copper next week will increase, but the shipments of domestic smelters may decrease. The total supply will not change much. In terms of consumption, due to the fall in copper prices, the enthusiasm for downstream restocking will strengthen compared with this week.

To sum up, SMM expects supply to remain flat and demand to increase next week. And inventory would fall.