SHANGHAI, Nov 12 (SMM) - The copper inventories across major Chinese markets fell 12,600 mt from a week earlier to 82,600 mt as of Friday November 12, according to SMM data, which is also the first time the inventory fell below 90,000 mt this year.
The declines were mainly contributed by Shanghai and Tianjin, with the inventory of the former city reducing 11,800 mt to 51,900 mt amid less arrivals from domestic market (some has been exported) and decreased volume of imported copper that cleared customs. The inventory in Tianjin dropped 1,000 mt to around 0 mt, as the downstream sector mostly consumed copper from social and in-house warehouses in a time when the copper cathode in north China was unable to be transported to south China amid cold weather. Guangdong saw an increase of 200 mt in inventory, which rose to 12,800 mt amid more arrivals from overseas and domestic market, including Fujian and Jiangxi.
Going forward, the copper inventory will probably drop again due to limited arrivals of imported copper, export plans of domestic smelters and news that there will be no releases of national reserves this month. And the consumption is likely to pick up after the delivery of SHFE contracts.