Copper inventories in mainstream regions across the country increased by 1.57% over the weekend [SMM weekly data]

SMM December 22 News:

Data Review: As of Monday, December 22, SMM's national mainstream copper inventories increased 1.57% WoW, with total inventory up 69,000 mt YoY.

Specifically, Shanghai's copper cathode inventory saw a slight buildup WoW, primarily driven by increased arrivals of imported material, while arrivals of domestic material decreased and end-use consumption remained weak. Jiangsu's inventory experienced minor destocking, with overall limited change, mainly due to a balanced pace of warehouse withdrawals and arrivals. Guangdong's inventory increased WoW, with mediocre performance on the consumption side; low daily average warehouse withdrawals indicated weak downstream demand, coupled with increased arrivals of domestic material, leading to inventory growth.

Looking ahead, supply side, arrivals of imported copper remained low, while domestic material arrivals maintained normal levels, resulting in a tight overall supply landscape. Demand side, high copper prices suppressed downstream purchasing sentiment. According to our survey, the weekly operating rate for copper cathode rod is expected to be 62.59% this week, down 0.47 percentage points WoW and down 12.33 percentage points YoY. Considering both supply and demand, the market is expected to show a pattern of "reduced supply and weak consumption" this week, with weekly inventory likely to experience some buildup.