Copper Inventory in Major Chinese Markets down 400 mt over Weekend

SHANGHAI, Aug 15 (SMM) - As of Monday August 15, SMM copper inventory across major Chinese markets dropped 400 mt from last Friday to 70,300 mt. The total inventory fell by 89,400 mt compared with the same period last year when the inventory was recorded at 159,700 mt.  In detail, the inventory in Shanghai fell 2,100 mt to 51,800 mt, the inventory in Guangdong added 800 mt to 8,400 mt, the inventory in Jiangsu increased 800 mt to 5,300 mt, the inventory in Tianjin rose 100 mt to 600 mt, while the inventory in other regions stayed unchanged.

At the weekend, the arrival of imported copper in Shanghai was low, and the output of some smelters decreased due to the hot weather in east China. Besides, some of the goods flowed into the Guangdong market, thus the inventory in Shanghai dropped slightly. The arrival of goods in Guangdong increased as some smelters and traders shipped their goods to Guangdong amid the wide spread of premiums between Shanghai and Guangdong. In Tianjin, the inventory rose slightly owing to the end of the overhaul of smelters in west Inner Mongolia.

Looking forward, the domestic supply may rise this week as some smelters resume their normal production from maintenance. The downstream demand is expected to remain stable, thus the weekly inventory this week will increase slightly. The market shall still pay attention to the impact of power rationing in central China on both supply and demand.