Copper Social Inventory Fell to 102,100 mt, as Tight Arrivals in Many Regions Sustained Destocking [SMM Weekly Data]

SMM, August 31:

Data summary: As of Monday, August 31, SMM copper inventories in major regions across China fell by 12,100 mt WoW from last Monday to 102,100 mt, with total inventories down 30,000 mt from 132,100 mt in the same period last year.

By region, in Shanghai, arrivals of imported cargo decreased due to port congestion, and domestic arrivals were limited by maintenance and export diversion; combined with steady consumption, inventories destocked. In Jiangsu, arrivals of both imported and domestic cargo were limited, and inventories continued to decline. In Guangdong, with the export window open and the Shanghai-Guangdong price spread widening, domestic arrivals decreased, and inventories fell in tandem.

Looking ahead, on the supply side, short-term arrivals of both domestic and imported copper cathode were reduced. On the demand side, although the market was about to enter the traditional peak season, copper prices stayed high, end-use consumption had yet to clearly recover, and overall buying was mainly just-in-time procurement. According to the survey, the operating rate of copper cathode rod producers is expected to increase to 63.39% this week, up 0.95 percentage points WoW. Overall, domestic spot supply was marginally tight, while end-user procurement was limited, and China's social inventories of copper cathode are expected to continue a slight destocking trend this week.