During the Chinese New Year, copper inventories in major regions across the country increased by 1.073 million mt [SMM weekly data].

SMM, February 6: As of Monday, February 6, copper inventories in major regions across China tracked by SMM increased by 107,300 mt compared to pre-holiday levels, reaching 273,100 mt. Total inventories were 12,600 mt lower than the 285,700 mt recorded after the holiday last year. Among them, inventories in Shanghai were 24,600 mt lower year-on-year, while Guangdong and Jiangsu regions saw increases of 9,600 mt and 7,500 mt, respectively. 》Click to apply for access to the SMM Metal Industry Chain Database Specifically, the inventory buildup in Shanghai during the Chinese New Year was relatively small, mainly due to reduced shipments from nearby smelters. Some smelters reduced shipments in preparation for upcoming production cuts, while others stockpiled goods for export. In contrast, inventory buildup in Jiangsu and Guangdong was significant, as downstream enterprises had not yet resumed normal production. This was also reflected in the continued decline in Guangdong's daily outflows from warehouses. Smelters were forced to send goods to warehouses for delivery purposes. Looking ahead, smelter production in February is expected to remain high, and under the backdrop of significant discounts, smelters are likely to continue transferring goods to delivery warehouses. Warehouse arrivals are also expected to remain substantial next week. On the demand side, some manufacturers will not fully resume normal production until after the Lantern Festival. Therefore, we anticipate an oversupply situation next week, with weekly inventories expected to continue increasing.