Copper Inventory in Major Chinese Markets Decreased

SHANGHAI, Mar 21 (SMM) - As of Monday March 20, SMM copper inventories in major Chinese markets decreased 7,500 mt from last Friday to 218,700 mt, down 43,700 mt from Monday March 13. This is up 22,100 mt from pre-CNY level. Over the weekend, only several areas saw a decrease in inventory, and the inventory in most other areas was flat compared with last Friday. Inventories in Shanghai decreased 6,500 mt to 218,100 mt, those in Jiangsu decreased 1,000 mt to 21,600 mt, and those in Zhejiang decreased 100 mt to 2,500 mt. The inventories in other regions were flat compared with last Friday.

Over the weekend, Jiangsu, Zhejiang and Shanghai saw destocking mainly because copper prices fell sharply last week, which prompted downstream buyers to purchase actively. Given the profit of copper imports, the imports of copper in Shanghai increased over the weekend, even as the inflow of imported copper in Guangdong was not large. It is expected that there will be additional imports this week, and the supply will increase. If the demand improves, it is expected that the inventory will still be depleted this week.  But the destocking rate is expected to slow down compared with last week.