SHANGHAI, Jul 8 (SMM) - As of Friday July 8, SMM copper inventory across major Chinese markets decreased by 8,300 mt from Monday to 118,100 mt, down by 8,100 mt from last Friday. Compared with Monday's data, the inventories in most regions of China remained almost unchanged, only the inventory in Shanghai and Guangdong decreased. The total inventory dropped by 84,400 mt compared with the same period last year when the inventory was recorded at 202,500 mt. Among them, the inventory in Guangdong dropped by 56,000 mt, the inventory in Jiangsu dipped by 11,900 mt, and the inventory in Shanghai fell by 11,500 mt. There are several reasons for the decrease in inventory this week. 1. Before the mid-year, smelters actively shipped goods to clear their inventory. In early July, the inventory was not high and the shipments decreased. This week, the arrival in Shanghai and Guangdong fell sharply. 2. Downstream restocked properly after copper prices dropped sharply.
In detail, the inventory in Shanghai decreased by7,600 mt to 79,900 mt, and the inventory in Guangdong fell by 700 mt to 27,800 mt.
Looking forward, shipments from smelters may increase before the delivery, but the customs clearance of imported copper will decrease when the import window is closed, so the total supply will rise slightly next week. Whether copper prices can stand firm next week is of utmost concern. Downstream is willing to restock substantially only when the fluctuation of copper prices decreases. It is expected that the weekly inventory next week will increase slightly.
