Copper inventories in major regions across the country increased slightly by 900 mt during the week [SMM weekly data].

SMM March 27 News: As of Thursday, March 27, SMM's copper inventories in mainstream regions across the country increased slightly by 900 mt WoW to 335,900 mt, down 11,900 mt from the previous Thursday, marking the fourth consecutive week of destocking. Currently, inventories have fallen back from highs by 42,500 mt YoY and are 56,400 mt lower than the same period last year. Click to apply for access to the SMM metal industry chain database. In detail, Shanghai's inventory decreased by 500 mt from Monday to 235,900 mt, while Jiangsu's inventory dropped by 1,100 mt to 57,800 mt. Although consumption in east China pulled back, arrivals decreased more significantly, with both imported and domestic copper arrivals reportedly reduced. Guangdong's inventory increased by 1,700 mt to 43,200 mt, as arrivals from the north surged this week, significantly higher than last week. High copper prices also suppressed downstream consumption, reflected in the continuous decline in daily average outflows from warehouses in Guangdong. The increase in inventory in south-west China was due to weak downstream consumption. Looking ahead, it is reported that imported copper arrivals will remain low next week, and domestic copper increments will also be limited, keeping total supply at a low level. On the consumption side, downstream demand is expected to recover at the beginning of the month, but the focus should be on copper price trends. As long as copper prices do not rise sharply, consumption will improve; otherwise, it will remain weak. Therefore, we believe next week will see tight supply and a slight recovery in demand, with weekly inventories expected to continue declining.