SHANGHAI, Feb 24 (SMM) - As of Friday February 24, copper inventories in mainstream markets tracked by SMM fell by 4,500 mt from Monday to 325,400 mt, and were flat from last Friday. This is up 128,800 mt from pre-CNY level, snapping a growth of eight consecutive weeks since end-December. The market shall keep an eye on whether there will be a pivot in inventory next week.
Only Guangdong saw inventory growth compared to Monday. Total domestic inventory grew 104,000 mt from 221,400 mt in the same period last year. The inventory was 59,100 mt higher than the same period last year in Shanghai, 7,300 mt higher in Guangdong, 23,400 mt higher in Jiangsu, and 7,200 mt higher in Chongqing.
The inventory in Shanghai decreased by 1,900 mt to 189,000 mt compared with Monday, and the inventory in Jiangsu decreased by 4,000 mt to 44,600 mt. Despite arriving shipments of imported copper recently, the volume was not high. Downstream stockpiling in east China increased slightly compared with last week, causing a slight inventory decline. Inventory in Guangdong increased by 1,600 mt to 65,600 mt. Consumption in Guangdong continued to weaken this week until it improved slightly on Friday. Increased shipments arrivals of seaborne copper combined with sluggish consumption drove the inventory growth in Guangdong, which can also be reflected in falling daily average shipments there.
SMM understood that arriving shipments of imported copper will increase slightly next week. But most market supply will be domestic copper. Consumption next week will outperform this week on the back of falling copper prices and adequate cash flows in March. To sum up, SMM expect supply and demand to increase next week. And inventory would fall marginally.
