Copper Inventory in Major Chinese Markets Dipped 14,400 mt on Week

SHANGHAI, Oct 22 (SMM) - As of Friday October 22, the copper inventory in the mainstream Chinese markets dipped by 14,400 mt from Monday to 94,700 mt. Inventory fell across most regions except for Zhejiang. The inventory in Zhejiang increased slightly by 500 mt to 500 mt. The inventories in Guangdong decreased by 1,500 mt to 9,900 mt, and inventories in Shanghai decreased by 11,400 mt to 64,600 mt. The inventory in Jiangsu region fell 1,000 mt to 11,500 mt and the inventory in Tianjin dropped 1,000 mt to 3,500 mt.

The sharp drop in the volume of customs clearance for imported copper amid the poor import ratio this week are the main driver for the decrease in inventories in Shanghai and Guangdong. Due to the low local spot premium in Tianjin, smelters in the north shifted to deliver goods to east China, which lowered the inventory in Tianjin.

It is expected that the import volume next week will be slightly more than this week. However, domestic consumption is expected to weaken due to factors such as high premiums and copper prices and the approach of the month-end. As such, domestic inventories may increase slightly next week.