This week, copper inventories in major regions across the country showed a significant buildup [SMM weekly data].

SMM December 25:

Data Review: As of Thursday, December 25, SMM's national mainstream copper inventories increased 14.96% WoW from Monday, marking the third consecutive week of inventory buildup, with total inventory up 88,200 mt YoY.

By region, Shanghai's copper cathode inventory saw significant buildup; although arrivals were moderate, weak downstream consumption suppressed by high copper prices was the main driver. Jiangsu also experienced inventory accumulation, driven by increased domestic arrivals and sluggish downstream consumption. Guangdong's inventory rose WoW, with notably weak consumption; low daily average warehouse withdrawals further indicated poor downstream demand, leading to higher inventory.

Looking ahead, supply side, imported copper arrivals remain low, while domestic arrivals are normal, keeping the overall supply landscape tight. Demand side, high copper prices continue to break new highs, significantly dampening downstream purchase willingness. Overall, the market is expected to show a pattern of "contracting supply and weak consumption" next week, with weekly inventories anticipated to continue building.