SHANGHAI, May 13 (SMM) - As of May 13, copper inventory across major Chinese markets dropped 2,600 mt from Monday to 118,900 mt, a decrease of 1,100 mt from last Friday. The total inventory fell 222,700 mt from the same period last year when the inventory was recorded 341,600 mt. The pandemic and the transportation problem dragged down the operating rates of copper processing enterprises, even though the copper prices dropped significantly after the Labour Day holiday this year. Moreover, most downstream enterprises have completed their restocking at the beginning of this week due to the huge spread between the front-month and next-month contracts, so their willingness to restock became weak at the end of this week.
In detail, the inventory in Shanghai decreased 300 mt to 84,600 mt, the inventory in Guangdong dropped 200 mt to 26,300 mt, the inventory in Jiangsu fell 2,000 mt to 5,100 mt, and the inventory in Tianjin dipped 100 mt to 300 mt. Looking forward to next week, the supply will increase as the imported copper will continue to rise, while the consumption is expected to remain stable. Therefore, SMM expects that the weekly inventory next week will probably increase.
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.