As of Thursday, October 24, SMM copper inventories in major regions nationwide slightly increased by 200 mt from Monday to 219,600 mt, still 54,100 mt higher than before the holiday. However, this week saw weekly destocking, though the volume was not significant, only 9,600 mt. Compared to Monday, inventories in most regions nationwide decreased, with only Shanghai showing an increase. Total inventory was 151,600 mt higher compared to 68,000 mt in the same period last year, with Shanghai 107,800 mt higher, Jiangsu 14,600 mt higher, and Guangdong 38,600 mt higher.
Specifically, Shanghai's inventory increased by 5,800 mt from Monday to 156,500 mt, mainly due to a large arrival of imported copper. Jiangsu's inventory slightly decreased, primarily due to a reduction in domestic copper arrivals. Guangdong's inventory decreased by 3,900 mt to 38,600 mt, affected by maintenance and production cuts at nearby smelters, leading to a noticeable decline in arrivals and an increase in warehouse outflows, as reflected by the continuous rise in Guangdong's daily outflows from warehouses.
Looking ahead, although domestic copper arrivals are decreasing, a considerable amount of imported copper is still arriving. We expect total supply to increase next week compared to this week. On the downstream consumption side, as the end of the month approaches, downstream enterprises' orders are increasing significantly, and the slight drop in copper prices provides limited support for consumption. Therefore, we expect next week to see an increase in supply and a decrease in demand, with weekly inventories likely to increase again.
