Copper Inventory across Major Chinese Markets Added 3,900 mt over Weekend

SHANGHAI, Aug 8 (SMM) - As of Monday August 8, SMM copper inventory across major Chinese markets increased by 3,900 mt from last Friday to 72,800 mt. The total inventory dropped by 97,200 mt compared with the same period last year when the inventory was recorded at 170,000 mt. In detail, the inventory in Shanghai rose by 3,200 mt to 57,500 mt, the inventory in Guangdong increased by 400 mt to 6,200 mt, the inventory in Jiangsu added by 200 mt to 4,500 mt, the inventory in Tianjin increased by 100 mt to 400 mt, while the inventory in other regions stayed unchanged.

The inventory in Shanghai rose as the imported copper was cleared customs at the weekend, and the shipments from smelters that resumed the production rose. In Guangdong, the arrivals and consumption were significantly lower than the normal level amid the weak supply and demand. In Tianjin, the inventory rose slightly owing to the end of the overhaul of smelters in west Inner Mongolia.

Shipments from the smelters will return to normal this week with the completion of maintenance of smelters in various places in China. Besides, approaching the delivery of the SHFE 2208 copper contract, the smelters will be more willing to ship. However, the downstream consumption may decline slightly amid the high premiums and wide spread between the front-month and next-month contracts. SMM believes that the weekly inventory this week will rise.