Copper Inventories in Major Chinese Regions Slightly Increased Over the Weekend [SMM Weekly Data]

SMM, December 15 -

As of Monday, December 15, SMM's national mainstream copper inventories saw a slight buildup WoW from last Thursday, with the scale of accumulation remaining relatively limited. Total inventory also increased YoY compared to the same period last year.

By region, Shanghai's copper cathode inventory experienced slight destocking WoW, mainly due to the conclusion of trade activities related to the final contract, leading to a decrease in arrivals of both imported and domestic supplies. Jiangsu's inventory showed accumulation, primarily because of weak consumption. Guangdong's inventory increased WoW from last Thursday; although signs of recovery emerged in consumption, and the rise in daily average warehouse withdrawals indicated a recovery in downstream demand, inventory still grew due to increased arrivals of domestic supplies.

Looking ahead, supply side, low arrivals of imported copper and reduced domestic supply arrivals after delivery point to a tight supply landscape. Demand side, after copper prices retreated, some downstream enterprises showed increased willingness to restock at lower prices. According to our survey, the weekly operating rate for copper cathode rod is expected to be 63.83% this week, down 0.71 percentage points WoW and down 16.79 percentage points YoY. Considering both supply and demand, the market is expected to exhibit a "reduced supply, recovering consumption" pattern this week, with weekly inventory likely to see slight destocking.