SHANGHAI, Mar 23 (SMM) – Social inventories of copper cathode in south China’s Guangdong province extended their slide over the weekend after the stocks shrank for the second consecutive week as of March 20.
SMM data showed that social inventories of copper cathode at four major warehouses in Guangdong stood at 100,500 mt as of March 23, down 1,300 mt from Friday March 20. The stocks decreased 8,600 mt in the week ended March 20, accelerating from a weekly decline of 5,800 mt in the previous week.
Reduced arrivals accounted for the declines in social inventories of copper cathode in Guangdong last week. SMM learned that except for one copper smelter that maintained normal shipments to social warehouses, other smelters scaled back shipments and arrivals of imported copper also declined.
Plunges in copper prices in the second half of last week dampened downstream purchases. But investors’ confidence will likely be restored if copper prices halting declines this week. This, coupled with expected resumed shipments from smelters, may keep spot copper offers in Guangdong stable this week.
