SHANGHAI, Oct 18 (SMM) – As of Monday October 18, the copper inventory in the mainstream Chinese market rose 3,900 mt from Friday October 15 to 109,100 mt, the second consecutive time that the inventory added on Monday over the weekend.
The inventories across major markets in China all recorded gains, mainly because mostly downstream buyers refrained from restocking amid surging copper prices later last week and wide monthly spread ahead of the delivery of SHFE contract. Meanwhile, the slightly higher arrivals over the weekend also contributed some of the increase in the inventory.
In details, the inventory rose 2,100 mt to 11,400 mt in Guangdong, added 300 mt to 76,000 mt in Shanghai, climbed 800 mt to 3,500 mt in Chongqing, advanced 500 mt to 4,500 mt in Tianjin and rose 200 mt to 1,200 mt in Chengdu. The inventories in other regions were unchanged.
Looking forward, the arrivals of imported copper are likely to rise slightly. The downstream sector will still be restrained by the power rationing. The price spread between copper cathode and copper scrap expanded amid rising copper prices, suppressing copper cathode demand. As such, the domestic social inventory of copper is likely to add slightly this week.