SHANGHAI, Jan 13 (SMM) - As of Friday January 13, SMM copper inventory across major Chinese markets stood at 135,500 mt, up 13,000 mt from Monday and 18,000 mt from last Friday. The inventory has increased for three consecutive weeks since the end of December, which was caused by the poor downstream consumption. Compared with Monday's data, the inventories across various regions grew this week. The total inventory was 48,900 mt higher than in the same period last year when the figure was 86,600 mt. Among them, the inventory in Shanghai added 22,900 mt YoY, that in Guangdong stood flat, that in Jiangsu grew 22,300 mt, and that in Zhejiang rose 3,700 mt.
In detail, the inventory in Shanghai increased 8,200 mt to 91,900 mt compared with Monday, and the inventory in Jiangsu added 4,100 mt to 27,600 mt. Smelters in north China shipped their goods actively to the east before the delivery of the SHFE 2301 copper, which contributed to the growth of inventory in east China. Inventory in Guangdong rose 400 mt to 9,100 mt. Production of the nearby smelters has not grown to the normal level despite the end of the overhaul. Besides, the transportation of goods was delayed at the year-end. In addition, the demand decreased as most downstream companies in Guangdong have taken their Chinese New Year holiday, which can also be reflected in the recent continuous decline in the average daily shipments flowing out of the warehouses in Guangdong. In general, the copper supply and demand in the Guangdong market were both weak.
Looking forward, the arrival of imported copper will be low WoW next week, but that of domestic copper will grow somewhat, the SMM survey shows. The overall supply is expected to increase compared with this week as the smelters will increase their shipments to the warehouses approaching the delivery of SHFE 2301 copper while the downstream consumption will reduce. The consumption will decline greatly next week since the downstream companies will have the CNY holiday one after another. SMM believes that the supply will grow while the consumption may decrease next week, thus the inventory will increase further.