Copper Inventory across Major Chinese Markets Added 5,000 mt over Weekend

SHANGHAI, Aug 29 (SMM) - As of Monday August 29, SMM copper inventory across major Chinese markets added 5,000 mt from last Friday to 73,300 mt. The total inventory dipped 56,700 mt compared with the same period last year when the inventory was recorded at 130,000 mt. Inventories in all regions of the country rose over the weekend. In detail, the inventory in Shanghai added 800 mt to 61,900 mt, the inventory in Guangdong rose 4,200 mt to 6,900 mt, the inventory in Tianjin increased 100 mt to 600 mt, the inventory in Chengdu dipped 100 mt to 800 mt, while the inventory in other regions stayed unchanged.

Arrivals of both imported copper and domestic copper in Shanghai increased slightly over the weekend. The impact of power rationing on smelters has been eased, thus the domestic supply of copper cathode is growing gradually. In Guangdong, the inventory rose significantly. On one hand, goods arrived at smelters in a centralised way, and the demand for customs clearance of imported copper increased slightly. On the other hand, the normal shipment volume of smelters, the high premiums in this region, and the production suspension of some copper rod producers amid the high premiums also contributed to the growing inventory in Guangdong. 

Looking forward, as the power rationing in various regions is eased, the domestic copper output will gradually increase. However, the consumption may be weaker than last week because of the high premiums and copper prices as well as the month-end factor. SMM believes that the inventory this week may continue to rise.