Copper Inventories in Major Regions Across China Continued to Accumulate Ahead of New Year's Day [SMM Weekly Data]

SMM December 31 News:

Data Review: As of Wednesday, December 31, SMM's national mainstream copper inventories increased 11.22% WoW, with total inventory up 124,600 mt YoY.

Specifically, copper cathode inventories in the Shanghai area continued to build up, driven by concentrated arrivals of domestic supply, relatively low imported supply, and warehouse withdrawals falling short of expectations, leading to a significant inventory increase. The Jiangsu area also showed an inventory buildup trend, as downstream consumer demand was noticeably weak, directly pushing inventory higher. Inventories in the Guangdong area grew WoW as well, with consumption also weak and daily average warehouse withdrawals remaining low, further confirming sluggish downstream demand and contributing to rising inventory.

Looking ahead, supply side, imported copper arrivals are expected to remain low, while domestic supply arrivals stay at normal levels, resulting in a generally tight overall market supply landscape; focus can be placed on future smelter export activity. Demand side, with the New Year holiday approaching, downstream enterprises show no willingness to restock, and weak demand is expected to persist. Overall, the market is projected to exhibit a pattern of "contracting supply and weak consumption" next week, with weekly inventories expected to continue accumulating.