Copper Inventories in China's Major Regions Showed Overall Inventory Buildup During the Week [SMM Weekly Data]

SMM May 21 News:

Data Brief: As of Thursday, May 21, SMM copper inventories in mainstream regions nationwide increased by 500 mt WoW to 243,800 mt, up 103,900 mt compared to the same period last year (139,900 mt).

Specifically, arrivals of both imported copper and domestic copper in Shanghai were relatively low, and elevated copper prices dampened downstream trading activity, making transactions sluggish. Tight supply drove a slight inventory drawdown. In Jiangsu, inventory changes within the week were relatively small, with a steady pace of inflows and outflows, resulting in only a slight inventory buildup. In Guangdong, domestic copper arrivals increased notably, while high copper prices suppressed enterprise production and procurement, and end-use demand remained weak, leading to continued inventory buildup in the region.

Looking ahead, supply side, imported copper arrivals are expected to remain low in the short term, and domestic copper supply will also stay at low levels. Demand side, persistently high copper prices continue to dampen downstream stocking enthusiasm, with overall market demand remaining weak. The current market presents a pattern of tight supply and lackluster demand, and China's copper social inventory is expected to continue its inventory buildup trend next week.