Slight Decrease in Copper Inventories in Major Regions Nationwide by 300 mt This Week [SMM Weekly Data]

As of Thursday, October 31, SMM copper inventories in major regions nationwide slightly decreased by 300 mt from Monday to 209,800 mt, marking the second consecutive week of destocking. Compared to Monday's inventory changes, most regions nationwide saw a decrease in inventories, with only Shanghai and Tianjin experiencing an increase. Total inventories were 146,100 mt higher YoY from last year's 63,700 mt, with Shanghai's inventory 107,500 mt higher, Jiangsu's 14,500 mt higher, and Guangdong's 24,900 mt higher.

Specifically, Shanghai's inventory increased by 2,400 mt from Monday to 156,800 mt, mainly due to continuous arrivals of imported copper. Jiangsu's inventory slightly decreased by 1,200 mt to 16,600 mt; although consumption in the region was average this week, the low arrivals led to a decrease in inventory. Guangdong's inventory decreased by 400 mt to 32,500 mt; similar to Jiangsu, downstream consumption in Guangdong was poor this week, as reflected by the decline in the region's daily outflows from warehouses. However, Guangdong also received imported copper this week, resulting in only a slight decrease in total inventory.

Looking ahead, domestic copper supply is expected to remain low next week, but imported copper will continue to arrive, potentially increasing the total supply. On the demand side, consumption is expected to improve compared to this week. Therefore, we anticipate a scenario where both supply and demand increase, with weekly inventories likely to continue to slightly decrease.