As of Monday, May 27, copper stocks in major markets across China increased by 9,400 mt from a week ago to 424,500 mt, continuously hitting a new high for the year. Compared to last Thursday, most regions saw an increase in stocks, with only Chengdu and Tianjin experiencing a slight inventory decrease. The total stock was 306,200 mt higher YoY (11,830 mt), with inventory in Shanghai up by 236,200 mt, Guangdong by 15,800 mt, and Jiangsu by 50,000 mt.
Stocks in Shanghai increased by 3,100 mt from last Thursday to 302,700 mt, and stocks in Jiangsu increased by 3,000 mt to 57,500 mt. Despite some exports from smelters, a large amount of copper remained in the domestic market. This, together with inflows of imported copper, led to an increase in stocks in East China. Stocks in Guangdong increased by 3,600 mt to 55,200 mt, with arrivals increasing and outflows from warehouses continuously declining.
As the end of the month approaches, smelters face pressure to clear stocks, which may increase shipments. However, with ongoing exports, the total supply is not expected to increase. On the demand side, with copper prices remaining at historical highs and tight month-end funds for enterprises, purchasing volumes are expected to decrease. Therefore, we anticipate a weak supply and demand this week, with weekly stocks possibly rising slightly.
