SMM News on June 12:
As of Thursday, June 12, SMM copper inventories in major regions across China decreased by 4,700 mt from Monday to 144,800 mt, and by 4,000 mt from last Thursday. Currently, inventories are 24,700 mt higher than the previous low and 284,500 mt lower than the 429,300 mt recorded in the same period last year.
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Specifically, in the Shanghai region, inventories decreased by 1,700 mt from Monday to 101,900 mt. Although there was a supplement of imported copper in the region this week, the reduction in domestic copper arrivals was more significant, leading to a decline in inventories. In the Jiangsu region, inventories decreased by 600 mt to 16,700 mt, with reduced arrivals and moderate consumption. In the Guangdong region, inventories fell by 0.2 to 20,100 mt. Although consumption weakened this week, as reflected by the continuous decline in the daily average outflows from warehouses in Guangdong, the reduction in supply was more significant, leading to a decrease in total inventories.
Looking ahead, we expect that next week, both imported and domestic copper arrivals will be relatively low, and total supply will be less than that of last week. Regarding downstream consumption, spot premiums may rise again after the contract rollover, which will suppress downstream consumption. It is expected that consumption next week will be weaker than this week. Therefore, we believe that next week will see a situation of weak supply and demand, with weekly inventories possibly continuing to decline, but the decline will not be significant.
