Copper inventories in major regions across China continued to accumulate after the New Year's Day holiday [SMM weekly data].

SMM January 5 News:

Data Review: As of Monday, January 5, SMM's national mainstream copper inventories increased 7.83% WoW and rose 151,900 mt YoY. All regions except Shanghai continued inventory buildup this week.

Specifically, copper cathode inventories in Shanghai saw a slight destocking compared to last Wednesday. Increased arrivals of domestic supplies, fewer imported arrivals, and improved warehouse withdrawals during the holiday pushed inventories down slightly. Jiangsu saw significant inventory buildup, mainly due to increased arrivals of domestic supplies combined with weak consumption. Inventories in Guangdong continued to accumulate, with local consumption remaining weak. Suppliers shifted to delivery warehouses, and low daily average warehouse withdrawals further confirmed weak downstream demand.

Looking ahead, supply side, imported copper arrivals remained low, while domestic arrivals shrank, leading to overall tight supply. Demand side, post-holiday procurement sentiment among enterprises recovered. Considering both supply and demand, the market is expected to show a "supply reduction, slight consumption recovery" pattern this week, and inventories are expected to decrease within the week.