Total National Copper Inventories Edged Up MoM, with Destocking Observed in Regions Outside Shanghai [SMM Weekly Data]

SMM January 22:

Data Review: As of Thursday, January 22, SMM's national mainstream copper inventories increased 2.9% WoW, with total inventory up 203,000 mt YoY. All regions except Shanghai saw destocking.

Specifically, Shanghai's copper cathode inventory continued its buildup; despite some recovery in consumption, the overall increase in arrivals was more significant. Jiangsu's inventory decreased, primarily due to weather-related logistics disruptions affecting arrivals, coupled with improved consumption. Guangdong's inventory also saw a slight reduction, mainly benefiting from a drop in arrivals and a marginal recovery in consumption.

Looking ahead, supply side, improved import arrivals combined with steady domestic supply are expected to stabilize overall supply. Demand side, with copper prices stabilizing, rigid demand is being released, supported by stockpiling for the Chinese New Year, showing signs of marginal improvement. Overall, the market is expected to show a pattern of "supply contraction and consumption improvement" next week, with weekly inventories likely to see destocking.