Copper Inventories in Major Domestic Regions Continued to Build Up Before Chinese New Year [SMM Weekly Data]

SMM February 12 News:

Data Review: As of Thursday, February 12, SMM's national mainstream copper inventories increased 5.3% WoW, with total inventory up 27,400 mt YoY.

By region, Shanghai's copper cathode inventory saw significant buildup, as domestic supply continued to arrive and imported supply also concentrated at ports. Jiangsu inventory decreased slightly, driven by downstream enterprises' pre-holiday stockpiling and cargo pick-up. Guangdong inventory remained stable, with the market already entering holiday mode and only some domestic supply arriving.

Looking ahead, supply side, the opening of the import arbitrage window is boosting arrivals of imported copper, while domestic supply arrivals are expected to decrease due to the approaching Chinese New Year. Demand side, with the Spring Festival holiday approaching, downstream enterprises are gradually entering a holiday pace, and end-use demand is weakening. Considering both supply and demand, copper market next week is expected to show normal supply and weaker consumption, with weekly inventories entering a buildup phase.