Copper Inventory in Major Chinese Markets Added 10,400 mt from Monday

SHANGHAI, Jul 1 (SMM) - As of Friday July 1, SMM copper inventory across major Chinese markets increased by 10,400 mt from Monday to 126,200 mt, up by 23,900 mt from last Friday. Compared with Monday's data, the inventories across China increased. The total inventory dropped by 106,500 mt compared with the same period last year when the inventory was recorded at 232,700 mt. Among them, the inventory in Guangdong dropped by 60,000 mt, the inventory in Shanghai dipped by 26,400 mt, and the inventory in Jiangsu fell by 14,000 mt. The increase in inventory this week is contributed by, first of all, smelters actively ship goods to the warehouses to relieve their inventory pressure approaching the mid-year. Secondly, downstream funds are tight and they are unwilling to make excessive restock amid falling copper prices. Thirdly, the imported copper continuously flows into the domestic market.

In detail, the inventory in Shanghai increased by 5,100 mt to 86,100 mt, the inventory in Guangdong rose by 5,300 mt to 29,900 mt, and the inventory in Tianjin added 100 mt to 1,100 mt.

Looking forward, the arrival of domestic and imported copper may fall further, while the consumption will recover somewhat. Therefore, SMM expects that the weekly inventory will drop slightly next week, and in the short term, the inventory may reach a low level.