Copper Inventories in Mainstream Chinese Markets Added 16,700 mt over Weekend

SHANGHAI, Feb 6 (SMM) - As of Monday February 6, copper stocks in mainstream markets tracked by SMM increased by 16,700 mt to 314,400 mt compared with Friday February 3. At present, the total inventory has increased by 117,800 mt compared with 196,600 mt before Chinese New Year holidays, and the amount of accumulated inventory post-CNY holidays is slightly higher than the same period last year. Over the weekend, inventories grew across major regions. Inventories in Shanghai increased by 13,100 mt to 184,700 mt, and inventories in Guangdong increased by 3,500 mt to 60,800 mt. Those in Chongqing increased by 100 mt to 4,100 mt.

As far as we know, arriving shipments of imported copper were scarce in Shanghai and Guangdong. Most of the shipments arrivals were domestic copper. Downstream producers have resumed production and their stockpiling has picked up after February 5, which can also be reflected in the recent sharp increase in the average daily shipments from warehouses in Guangdong. Affected by this, the inventory increment has begun to decline.

We maintain the view of last Friday's that smelters are more willing to deliver amid big discounts, and arriving shipments will continue to grow. Downstream consumption will gradually recover. On the whole, both supply and consumption will pick up this week, and stock accumulation will be slower this week.