Copper Inventory across Major Chinese Markets Add 3,500 mt over Weekend

SHANGHAI, Dec 26 (SMM) - As of Monday December 26, SMM copper inventory across major Chinese markets stood at 79,700 mt, up 3,500 mt from last Friday but down 6,300 mt from the same period last year when the data was 86,000 mt, which has been lower than the same period last year for two consecutive weeks. The inventory in most areas of China increased except that in Jiangsu. In detail, the inventory in Shanghai increased 3,800 mt to 52,100 mt, the inventory in Guangdong added 600 mt to 4,200 mt, the inventory in Jiangsu dipped 1,000 mt to 17,600 mt, and the inventory in Chongqing grew 100 mt to 300 mt.

Since the middle of last week, the operating rates of downstream factories across China have declined to varying degrees because of the spread of COVID-19 outbreaks, which can also be reflected in the recent decline in the average daily shipment flowing output of the warehouses in Guangdong. In addition, approaching the year-end, smelters increased their shipments to dump their inventories.

SMM expects that the arrivals of domestic copper will grow WoW this week owing to the smelters’ dumping of their inventories, while those of imported copper will not rise. Operating rates of downstream producers will fall amid the impact of COVID-19 outbreaks and the companies' fund withdrawal near the year-end. Therefore, the inventory this week will increase.