SHANGHAI, Apr 29 (SMM) - As of Monday, April 29, copper inventories in mainstream markets across China fell by 16,800 tons from last Thursday to 387,900 tons, a rare sharp decline. The inventories decreased across most regions and only inventories in Chongqing increased. The total inventory is 219,800 tons higher than the 168,100 tons in the same period last year. Inventory in Shanghai is 171,100 tons higher than the same period last year, inventory in Guangdong is 6,000 tons lower, and inventory in Jiangsu is 42,700 tons higher.

Inventories in Shanghai decreased by 12,900 tons from last Thursday to 267,700 tons, and inventories in Jiangsu decreased by 2,500 tons to 57,500 tons. The supply was reduced due to the exports by smelters. In addition, the downstream companies' pre-holiday stocking was also one of the reasons for the decline in inventories in East China. Inventory in Guangdong region decreased by 1,500 tons to 58,100 tons due mainly to small arrivals. Most copper rod factories in Guangdong will close for 3 days during the Labour Day holiday, and some will close for 5 days. There was no strong willingness to replenish stocks before the holiday.

Supply is expected to decrease as smelter maintenance increases and export volumes rise. High copper prices have suppressed consumption. We believe that next week will see weak supply and demand, and inventories may rise again after the holiday.