SMM copper inventories in major regions across the country decreased by 28,400 mt over the weekend [SMM Weekly Data]

As of Monday, November 25, SMM copper inventories in major regions nationwide decreased by 28,400 mt compared to last Thursday, reaching 132,900 mt. However, total inventories were 74,300 mt higher YoY compared to 58,600 mt in the same period last year. Specifically, inventories in Shanghai were 61,300 mt higher YoY, Guangdong was 1,900 mt higher, and Jiangsu was 11,700 mt higher.

In detail, inventories in Shanghai decreased by 22,700 mt compared to last Thursday, reaching 105,000 mt. Inventories in Jiangsu decreased by 4,200 mt to 14,900 mt. Despite the arrival of imported copper, the lower arrival of domestic copper and moderate downstream consumption led to a significant decrease in inventories in east China. Inventories in Guangdong decreased by 1,800 mt to 9,100 mt, with fewer arrivals of both imported and domestic copper. Additionally, downstream orders in Guangdong remained strong, with some copper rod plants still operating at full capacity to meet export demands.

Looking ahead, it is expected that the arrival of imported copper this week will slightly decrease compared to last week, and the arrival of domestic copper will not significantly increase, leading to a slight decline in overall supply. On the demand side, downstream consumption is expected to continue to improve slightly this week. According to our survey, the weekly operating rate of copper cathode rod producers is expected to rise to 84.86%, up 0.6 percentage points WoW. Therefore, we anticipate a scenario of decreasing supply and increasing demand this week, with weekly inventories expected to continue to decline.