SHANGHAI, Apr 29 (SMM) - As of April 29, copper inventory across major Chinese markets dropped 4,300 mt from Monday to 110,600 mt, a decrease of 16,700 mt from last Friday. The total inventory was lower than the same period last year. The inventories in Shanghai, Chongqing and Chengdu increased, while the inventories in Guangdong, Zhejiang, Jiangxi and Tianjin dropped. Among them, the inventory in Shanghai increased the most. According to SMM research, most smelters are reluctant to ship goods to warehouses in Shanghai, instead, they send their goods to Changzhou, Wuxi, or directly to factories. The increase in Shanghai inventory was contributed by the sharp increase in arrivals of imported copper and the hindered transportation. The sharp decrease in Guangdong inventory was caused by the huge spread between east China and south China which attracted many traders and plants to ship goods from Guangdong inventory to Zhejiang, Jiangsu, and Jiangxi. In detail, the inventories in Shanghai increased 5,000 mt to 78,900 mt, the inventories in Guangdong dropped 8,900 mt to 23,400 mt, the inventory in Chongqing rose 700 mt to 900 mt, and the inventory in Tianjin dipped 200 mt to 1,100 mt.
Looking forward, according to SMM research, most downstream manufacturers in east China and south China will have a longer May Day holiday. Therefore, the inventory on the first day before the holiday is expected to increase significantly and be higher than that in the same period last year. However, due to the resumption of downstream production and the low in-plant inventory, it is expected that the downstream will restock and then the inventory will drop again.
The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.