SHANGHAI, Nov 25 (SMM) - As of Friday November 25, SMM copper inventory across major Chinese markets stood at 113,400 mt, down 8,300 mt from Monday and 14,600 mt from last Friday. Compared with Monday's data, the inventory in various regions across China decreased except that in Guangdong. The total inventory was 23,000 mt higher than in the same period last year when the figure was 90,400 mt. Among them, the inventory in Shanghai added 14,300 mt, that in Guangdong dipped 1,600 mt, and that in Jiangsu grew 11,000 mt.
In detail, the inventory in Shanghai dropped 6,800 mt to 77,100 mt from Monday, and that in Jiangsu fell 2,200 mt to 22,400 mt. Inventory in east China dropped as the downstream companies increased their purchases amid the falling copper prices this week. Inventory in Guangdong added 2,100 mt to 9,500 mt. Premiums in Guangdong remained high amid the low inventory. Operating rates of some processing companies dropped, which could be reflected in the recent decline in the daily shipment flowing out of the warehouses in Guangdong. In addition, the large spread between Shanghai and Guangdong boosted the transfer of goods from east China to Guangdong.
Looking forward to the market outlook, near the end of the month, smelters will increase their shipments to alleviate their pressure. The amount of imported copper is not expected to grow significantly. However, the downstream purchases will decline at the end of the month, and the spread of COVID-19 will also have a certain impact on consumption. SMM believes that the weekly inventory next week may rise slightly owing to the growing supply but shrinking consumption.
