Tightened arrivals and downstream restocking lead to notable destocking of China's copper social inventory [SMM Weekly Data]

SMM June 11 News:

Data Summary: As of Thursday, June 11, SMM national mainstream social copper inventories decreased by 16,500 mt WoW to 217,800 mt. Total inventories were up 73,000 mt YoY from 144,800 mt in the same period last year.

Specifically, arrivals of imported and domestic copper in Shanghai shrank, and with a notable pullback in copper prices, downstream consumption improved, driving significant destocking in Shanghai. Arrivals in Jiangsu remained normal, but consumption was weak, leading to some inventory buildup. In Guangdong, arrivals dropped notably, and downstream demand increased after the copper price pullback, causing inventories to decline rapidly.

Looking ahead, in the short term, arrivals of imported and domestic copper will remain tight. On the demand side, with copper prices pulling back notably, downstream restocking is concentrated and demand recovers. Overall, the spot market has tight supply and improving demand. It is expected that China’s copper social inventories will continue destocking next week.