SMM China Copper Inventory in Major Markets Rose 2,600 mt on Week

SHANGHAI, Apr 8 (SMM) - As of Friday, April 8, SMM copper inventory across mainstream regions in the country achieved the first weekly rise since March 4, with an increase of 3400 mt to 140300 mt compared with Wednesday April 6, and a slight increase of 2600 mt compared with last Friday.

From Wednesday to this Friday, the regions where inventory increased and decreased each accounted for half across the country. Specifically, the inventory in Shanghai increased by 4500 mt to 83700 mt; rose by 400 mt to 45100 mt in Guangdong; added 2000 mt to 4200 mt in Jiangsu; decreased by 100 mt to 500 mt in Zhejiang; fell 1000 mt to 2200 mt in Chongqing; and dropped  400 mt to 2000 mt in Tianjin. Affected by the pandemic, the country's logistics has been in chaos recently. The inventory in Shanghai increased as the trucks are not allowed to leave the city due to severe pandemic situation. The inventory of Jiangsu and Zhejiang has decreased as the local downstream customers have turned to purchase local inventory. The arrivals in Guangdong have generally returned to normal, but the inventory increased due to poor downstream consumption. If the manufacturers in east China had not turned to the north for procurement at the end of this week, the inventory in Guangdong should have risen more significantly.

It is expected that the inventory will continue to increase next week because the logistics has little possibility of returning to the normal level, and the smelters who are to deliver the SHFE 2204 contract will also increase the shipments directly to warehouses through railway transport.