SMM News on May 22:
As of Thursday, May 22, copper inventories in SMM's mainstream regions across China increased slightly by 700 mt from Monday to 139,900 mt, up 7,900 mt from last Thursday, marking two consecutive weeks of weekly inventory buildup, albeit at a slower pace than the previous week. Currently, inventories have fallen back from highs by 237,100 mt compared to the year's peak and are 275,200 mt lower than the 415,100 mt recorded in the same period last year.
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Specifically, in the Shanghai region, inventories increased by 10,500 mt from Monday to 94,700 mt. The primary reason for the inventory increase in Shanghai this week was the replenishment of imported goods. In Jiangsu, inventories decreased by 6,600 mt to 14,700 mt, while in Guangdong, inventories fell by 0.11 to 13,300 mt. Arrivals in these two regions declined during the week, and consumption also recovered due to the pullback in premiums, as reflected by the rebound in the daily average outflows from warehouses in Guangdong.
Looking ahead, we anticipate that both imported and domestically produced copper arrivals will be lower next week, with total supply falling short of last week's levels. On the downstream consumption front, as the month-end approaches, total consumption is expected to be weaker next week compared to last week. Therefore, we believe that next week will witness a situation of weak supply and demand, with weekly inventories potentially resuming their decline.
