Copper Inventories across Major Chinese Markets Increased over Weekend, Forecast for This Week

As of Monday November 3, SMM copper inventory across major Chinese markets stood at 114,000 mt, up 600 mt from last Friday and 24,600 mt from the same period last year when the data was 89,400 mt. In detail, the inventory in Shanghai added 5,800 mt to 124,200 mt, the inventory in Guangdong dropped 400 mt to 50,600 mt, while the inventory in Jiangsu increased 2,000 mt to 19,600 mt.

Affected by the increase in customs clearance of imported copper and the decrease in downstream stockpiling at the end of the month in east China, the inventories in both Shanghai and Jiangsu increased. The arrivals over the weekend and shipments leaving Guangdong were at a low level, showing weak supply and demand. Inventories in Zhejiang fell due to warrants offered for sale.

SMM maintains the viewpoint that the customs clearance of imported copper will further increase this week, and the total supply is expected to increase compared with last week. In terms of consumption, the downstream purchasing enthusiasm at the beginning of the month will be stronger, even as high copper prices will still restrain consumption. To sum up, SMM expects both supply and demand to increase this week. And inventory would grow further.