SHANGHAI, Jun 27 (SMM) - As of Monday June 27, SMM copper inventory across major Chinese markets increased by 13,500 mt from last Friday to 115,800 mt, the largest growth since March. The market shall keep an eye on whether the inventory will rise continuously after July. The total inventory fell by 122,800 mt compared with the same period last year when the inventory was recorded at 238,600 mt. Last weekend, inventories in all regions of China rose. In detail, the inventory in Shanghai increased by 3,400 mt to 81,000 mt, the inventory in Guangdong added by 8,400 mt to 24,600 mt, the inventory in Jiangsu rose by 1,000 mt to 5,400 mt, the inventory in Chongqing increased by 400 mt to 1,800 mt, and the inventory in Tianjin rose by 300 mt to 1,000 mt.
On the weekend, the arrival of both imported and domestic copper increased as the imported window opened and the smelters wished to clear their in-plant inventory approaching mid-year. Besides, many downstream companies held a wait-and-see attitude because copper prices fell sharply and rapidly. Therefore, the increase in inventory was mainly contributed by the rising supply and weakening demand.
Looking forward, all industries are required to withdraw funds approaching the mid-year, so the market will see more sellers and fewer buyers, and the weekly inventory will continue to rise.