SHANGHAI, Sep 30 (SMM) - As of Friday September 30, SMM copper inventory across major Chinese markets stood at 66,200 mt, down 10,100 mt from Monday and 8,100 mt from last Friday. Compared with Monday's data, the inventories in most regions of China fell except that in Guangdong. The total inventory dipped 23,900 mt compared with the same period last year when the data was 90,100 mt. Among them, the inventory in Jiangsu dropped 10,400 mt, that in Shanghai fell 9,300 mt, and that in Guangdong dipped 4,800 mt. The decrease in inventory this week was contributed by the downstream pre-holiday restocking. Besides, the customs clearance of imported copper this week was not too much.
In detail, the inventory in Shanghai dropped 7,900 mt to 56,400 mt from Monday, and that in Jiangsu fell 2,000 mt to 600 mt. SMM survey showed that the pre-holiday restocking in east China was favourable, thus the downstream manufacturers will not have a long holiday during the National Day. Inventories in Guangdong added 400 mt to 6,000 mt amid the increase in imported copper and poor downstream consumption, which can also be reflected in the lower average daily shipments flowing out of the warehouses in Guangdong than in the same period last year.
Looking forward, SHFE 2210 copper contract will be delivered a few days after the National Day holiday. The spot prices will be quoted at discounts before the delivery amid the wide spread between the front-month and next-month contracts, thus the smelters may be more willing to deliver. Therefore, SMM believes that the inventory will rise sharply after the National Day holiday.