Copper Inventories in Major Regions Dropped by 12,800 mt Over the Weekend [SMM Weekly Data]

SMM Mar 24 News: As of Monday, March 24, SMM's national mainstream copper inventories decreased by 12,800 mt to 333,600 mt compared to the previous Thursday, and dropped by 15,400 mt from the previous Monday. The destocking trend continued over the weekend, with all regions experiencing varying degrees of inventory reduction, 53,700 mt lower than the same period last year. Specifically, Shanghai's inventory fell by 9,000 mt to 226,900 mt from the previous Thursday. After copper prices pulled back on Friday, downstream purchase willingness significantly increased, and with fewer arrivals, the overall inventory decline was noticeable. In Guangdong, there was a slight destocking compared to the previous Thursday, but due to higher premiums in the region, a clear price spread emerged with other areas, leading to some supplies from Jiangxi and Hunan flowing into the Guangdong market, increasing its inbound volume. In Jiangsu, some warrants were released, resulting in a small inventory reduction, and pickup volume increased over the weekend. Overall, under a tight supply backdrop, a pullback in copper prices will provide restocking opportunities for downstream players. Looking ahead to this week, Shanghai is expected to maintain its destocking trend, and attention should be paid to the sustainability of the Shanghai-Guangdong price spread; Guangdong may see an increase in inventory due to southbound shipments, leading to a small inventory buildup. With copper prices stabilizing above 80,000 yuan/mt, demand is unlikely to see a significant increase, and under weak supply and demand, the inventory decline in east China will be greater than in south China.