SHANGHAI, Dec 3 (SMM) – As of Friday December 3, the copper inventory across major Chinese markets fell 6,700 mt from Monday to 82,700 mt. The declines were mainly seen in Shanghai, Guangdong and Tianjin.
Specifically, the inventory in Shanghai decreased by 2,400 mt to 61,100 mt, and the inventory in Guangdong decreased 3,600 mt to 5,900 mt. The inventory in Tianjin declined 600 mt to 1,400 mt. The copper price continued to fall this week. And downstream companies stockpiled actively on adequate cash flows at the start of the month, which were the main reasons for the decline in inventories.
In addition, the invoice issuance issue for imported copper remains as a trouble in December, making it difficult to clear a large volume of imported copper into the domestic market. The smelters that undertook maintenance resume production. The volume of imported copper is unlikely to grow. The total supply is likely to grow slightly. The consumption is expected to remain stable as long as the copper prices do not rise sharply. Therefore, the inventory may increase slightly. And there is room for the spot premiums to drop, but the decline will not be significant.
