Copper stocks in major regions across the country decreased by 4,300 mt this week [SMM Weekly Data]

SMM, August 29: As of Thursday, August 29, SMM copper stocks in major regions across the country fell by 4,300 mt from August 26 to 279,100 mt, and decreased by 4,400 mt WoW, marking the eighth consecutive week of destocking, although the destocking speed has slowed. Compared to August 26's inventory changes, the inventory levels varied across different regions, with only Guangdong showing a slight increase, while other regions saw declines. The total inventory was 190,500 mt higher YoY, with Shanghai up by 120,000 mt, Jiangsu up by 29,100 mt, and Guangdong up by 43,500 mt.
Specifically, Shanghai's inventory fell by 3,900 mt from August 26 to 184,000 mt, Jiangsu's inventory decreased by 500 mt to 34,000 mt. Although there were arrivals of imported copper in east China, the arrivals of domestic copper decreased, and the outflows from warehouses were good, leading to a decline in east China's inventory. Guangdong's inventory increased by 600 mt to 56,000 mt. This week, the arrivals in Guangdong slightly decreased, but consumption weakened significantly, which was also reflected in the continuous fall back from highs in Guangdong's daily outflows from warehouses.
Looking ahead, it is reported that next week, domestic supply will decrease due to production cuts at smelters, but the arrivals of imported copper will increase. Therefore, the total supply next week is expected to slightly decrease. On the demand side, as copper prices fall back from highs and companies have ample funds at the beginning of the month, the purchase volume is expected to increase. Hence, we believe that next week will see a scenario of reduced supply and increased demand, with weekly inventory likely to continue decreasing.