SHANGHAI, Sep 23 (SMM) - As of Friday September 23, SMM copper inventory across major Chinese markets stood at 74,300 mt, down 10,400 mt from Monday and 10,200 mt from last Friday. Compared with Monday's data, the inventories across various regions fell. The total inventory dipped 29,200 mt compared with the same period last year when the data was 103,500 mt. Among them, the inventory in Shanghai dropped 13,400 mt, that in Jiangsu fell 10,400 mt, and that in Guangdong dipped 6,200 mt. The main reason for the decrease in inventory this week is that downstream consumption has improved after the delivery of the SHFE 2209 contract, and the import clearance volume is not too large.
In detail, the inventory in Shanghai fell 9,100 mt to 59,700 mt compared with Monday. Arrivals of imported copper increased slightly, but those of domestic copper did not rise much. Besides, the downstream restocking demand grew. Inventory in Guangdong decreased slightly by 100 mt to 8,000 mt. On one hand, the arrival of imported copper at the beginning of the week was quickly consumed. On the other hand, the overall downstream consumption was acceptable.
Looking forward, imported copper will arrive at ports continuously before the National Day holiday, but the arrival of domestic copper will stay unchanged. Approaching the National Day holiday (no futures trading during this period), the downstream will restock one after another next week, and the overall consumption is expected to be better than this week, so SMM expects the inventory to decline next week.