SHANGHAI, May 27 (SMM) - As of May 27, SMM copper inventory across major Chinese markets dropped by 2,200 mt to 107,600 mt from Monday, a decrease of 12,300 mt from last Friday. The inventory dropped sharply this week. The inventory in China showed a continuous decline after May 1 mainly because of the decrease in supply and the increase in demand. Compared with the data on Monday, the inventory in most regions of China this week fell, while the inventories in Shanghai rose. The total inventory fell 221,300 mt from the same period last year when the inventory was recorded at 328,900 mt. Because the arrival of imported copper in Shanghai increased, and the logistics of the city have not fully recovered, the inventory in Shanghai increased this week. In Guangdong, the inventory dropped sharply as the arrival of domestic copper increased slightly and some copper cathode was transported to regions where the downstream consumption is relatively good. The inventory in Jiangsu fell due to the increase in pick-up aroused by the recovered downstream consumption.
In detail, the inventory in Shanghai increased by 5,100 mt to 86,800 mt, the inventory in Guangdong dipped by 5,300 mt to 15,300 mt, and the inventory in Jiangsu dropped by 2,000 mt to 3,100 mt.
Looking forward, it is expected that the arrival of imported copper will increase next week, and the domestic supply will also rise, but the consumption may decrease due to the end of the month. SMM expects that the weekly inventory next week will increase slightly, while it dropped compared with the same period last year. The market shall pay attention to whether the downstream enterprises will restock actively during the Dragon Boat Festival.
Disclaimer:
The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.
