Copper inventories in major regions across the country fell by 1,800 mt during the week [SMM weekly data]

SMM June 19 News:

    As of Thursday, June 19, copper inventories in SMM's mainstream regions across China decreased by 1,800 mt from Monday to 145,900 mt, increased by 1,100 mt from last Thursday, and were 252,500 mt lower than the 398,400 mt recorded in the same period last year.

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     Specifically, inventories in the Shanghai region increased by 4,400 mt from Monday to 106,300 mt, primarily due to significant arrivals of both domestically produced copper (due to delivery reasons) and imported copper (including Russian copper arrivals) in the region this week. Inventories in the Jiangsu region decreased by 2,200 mt to 15,500 mt, while those in the Guangdong region decreased by 2,700 mt to 19,200 mt. The decline in inventories in these two regions was attributed to reduced shipments resulting from export activities by surrounding smelters, as well as increased procurement volume by downstream enterprises following the contract rollover, as reflected by the stabilization and rebound in the daily average outflows from warehouses in Guangdong.
    Looking ahead, we anticipate that the arrivals of imported copper next week will increase compared to this week, while domestic supply will decrease from last week (as smelters continue to export), with total supply expected to be slightly higher than last week. In terms of downstream consumption, there are signs of weakening orders from downstream enterprises as the mid-year approaches, and consumption is expected to be weaker next week than this week. Therefore, we believe that next week will witness a situation of increased supply and decreased demand, with weekly inventories likely to continue rising, albeit with a limited increase.