SHANGHAI, Jul 15 (SMM) - As of Friday July 15, SMM copper inventory across major Chinese markets increased by 1,500 mt from Monday to 120,700 mt, up by 2,600 mt from last Friday. Compared with Monday's data, the inventory in Shanghai and Chongqing rose, while that in Guangdong, Chengdu and Tianjin decreased. The total inventory dropped by 62,400 mt compared with the same period last year when the inventory was recorded at 183,100 mt. Among them, the inventory in Guangdong fell by 48,700 mt, that in Jiangsu dropped by 7,900 mt, while that in Shanghai was higher than in the same period last year. The higher inventory this week was caused by the increase in shipments from smelters near the delivery of the 2207 contract and the poor downstream consumption amid the falling copper prices.
In detail, the inventory in Shanghai increased by 3,600 mt to 86,800 mt due to poor consumption, while the inventory in Guangdong fell by 2,100 mt to 24,000 mt because of the maintenance of a smelter in Guangxi.
Looking forward, after the delivery of the 2207 contract, the shipment from smelters and the import volume will both decrease, so the overall supply may fall slightly. The change in inventory mainly depends on consumption, while the consumption will hardly improve amid the falling copper prices. The weekly inventory next week will rise slightly due to the weak supply and demand.
