Copper inventories in major regions across the country decreased by 10,100 mt during the week [SMM Weekly Data].

SMM, January 6: As of Thursday, January 9, SMM copper inventories in major regions across China decreased by 10,100 mt from Monday to 105,700 mt, down by 8,600 mt WoW, ending a two-week increase and resuming a downward trend. Compared to Monday's inventory changes, most regions across the country saw a decline in inventories, with only Jiangsu experiencing a slight increase. Total inventories were 33,700 mt higher than the 72,000 mt recorded in the same period last year. Among them, Shanghai's inventory was 24,000 mt higher YoY, Jiangsu's was 16,900 mt higher, while Guangdong's was 4,600 mt lower. Specifically, Shanghai's inventory decreased by 7,800 mt from Monday to 76,200 mt. This was due to reduced arrivals of imported copper and limited domestic copper arrivals, leading to a significant decline in the region's inventory. Jiangsu's inventory increased by 1,400 mt to 19,500 mt, as weakened consumption in northern regions shifted supplies to Jiangsu, resulting in an inventory increase. Guangdong's inventory decreased by 1,000 mt to 6,000 mt, as recent arrivals in Guangdong were limited, and downstream consumption remained moderate, as reflected by the continuous rise in Guangdong's daily outflows from warehouses. Looking ahead, imported copper arrivals are expected to increase next week compared to this week, while smelter shipments are unlikely to see a significant rise, suggesting that total supply will slightly exceed this week's level. On the demand side, with the Chinese New Year holiday approaching, some downstream end-user enterprises are expected to gradually begin their holiday break starting next weekend, leading to lower consumption next week compared to this week. Therefore, we anticipate a scenario of increased supply and reduced demand next week, with weekly inventories likely to rise again.