Copper inventories in major regions across China increased by 21,400 mt during the week [SMM Weekly Data].

SMM February 13 News: As of Thursday, February 13, SMM copper inventories in major regions across China increased by 21,400 mt from Monday to 326,200 mt, up by 53,100 mt WoW and by 160,400 mt compared to pre-Chinese New Year levels. The inventory buildup in the first week after the holiday exceeded the same period last year by 42,300 mt. >> Click to apply for access to the SMM Metal Industry Chain Database. Specifically, inventories in Shanghai rose by 13,900 mt from Monday to 189,400 mt. Both domestic and imported copper arrivals contributed to the increase, with a significant amount of domestic copper being delivered to warehouses for settlement. Currently, the warehouse warrant volume in Shanghai stands at 41,800 mt, up by 29,300 mt compared to pre-holiday levels, driving a notable inventory increase in the region. In Jiangsu, inventories increased by 4,700 mt to 58,600 mt, while in Guangdong, inventories rose by 4,000 mt to 66,900 mt. The relatively smaller inventory buildup in these two regions is attributed to the gradual recovery of downstream consumption, as reflected in the rapid rise in Guangdong's daily outflows from warehouses. Looking ahead, as the settlement date approaches, we expect the volume of domestic copper delivered to warehouses to continue increasing, along with the arrival of imported copper. Total supply is expected to remain abundant. On the demand side, downstream enterprises are resuming full production after the Lantern Festival, leading to a rise in demand. Therefore, we anticipate a scenario next week where both supply and demand increase, but the supply growth is expected to outpace the demand growth, resulting in a further weekly inventory buildup.