Copper Inventory in Major Chinese markets Added 3,900 mt over Weekend

SHANGHAI, Oct 25 (SMM) – As of Monday October 25, the copper inventory across major Chinese markets added 3,900 mt from last Friday to 98,600 mt, according to SMM data.

The inventory has grown on Monday for three consecutive weeks, which is a positive signal. If the copper inventory accumulate on Friday, it would be the inflection point for inventory. The inventory increase over the weekend was mainly in Shanghai and Guangdong; the inventory in other regions remained unchanged or decreased slightly. The slight increase in shipments arrivals of imported copper last weekend was the main driver for the increase in inventories in Shanghai and Guangdong. In addition, the suspension of production and maintenance by large downstream companies in Guangdong last weekend was also one of the reasons for the increase in inventories.

Specifically: The inventories in Guangdong increased 4,200 mt to 14,100 mt, the inventories in Shanghai added 900 mt to 65,500 mt, the inventory in Chongqing fell 500 mt to 3,000 mt, the inventory in Chengdu dipped 200 mt to 1,000 mt, and the inventory in Tianjin dipped 500 mt to 3,000 mt. Inventories in other areas changed little.

Arriving shipments of imported copper are expected to increase this week, but the increase will not be obvious. The power rationing continues in some areas, while the big price spread between copper cathode and copper scrap driven by the high copper prices will depress copper cathode consumption. As such, inventories should increase slightly this week.