SHANGHAI, Aug 12 (SMM) - As of Firday August 12, SMM copper inventory across major Chinese markets stood at 70,700 mt, down 2,100 mt from Monday, but up 1,800 mt from last Friday. Compared with Monday's data, inventories in most regions across China increased except that in Shanghai. The total inventory dropped by 88,800 mt compared with the same period last year when the inventory was recorded at 159,500 mt, Among them, the inventory in Guangdong dropped by 41,800 mt, and the inventory in Shanghai dipped by 41,300 mt. The main reasons for the increase in inventory this week are as follows. 1. The arrival of imported copper increased slightly. 2. Smelters that were overhauled earlier resumed the normal production one after another, but the output of some smelters in central China was reduced by the hot weather, so the overall domestic supply increased only slightly.
In detail, the inventory in Shanghai decreased by 3,600 mt to 53,900 mt compared with Monday. The supply and demand in east China declined to a certain extent due to the power rationing. The inventory in Guangdong rose by 1,400 mt to 7,600 mt as the shipments from smelters and traders rose amid the wide spread between Shanghai and Guangdong.
Looking forward, with the impact of power rationing, the situation of supply and demand in east China becomes uncertain, and it is expected that there will be a decrease in both supply and demand. However, in other areas, the supply will increase, and the demand will also grow due to the falling premiums after the delivery of the SHFE 2208 copper contract. Therefore, it is difficult to forecast the weekly inventory next week.