Copper Wire and Cable Inventories Decline Due to Holiday Stockpiling and Reduced Production

According to foreign media reports on May 8, Freeport-McMoRan has postponed the full production resumption of its Grasberg copper mine in Indonesia to early 2028, one year later than previously expected. The mine, once the world's second-largest copper mine, was shut down last year due to a severe mudslide disaster. Previously, Freeport executive Wenas had stated that the entire mine could reach full production by early 2027 once areas unaffected by the disaster were restarted.

French energy technology firm Schneider Electric said it plans to establish a Southeast Asia regional training centre in Malaysia in 2026, as rapid expansion of AI infrastructure continues to drive power demand growth across the region. The data centre capacity in Southeast Asia is projected to triple by 2030. Within this expansion, Malaysia is rapidly positioning itself as a pivotal regional hub for AI infrastructure, attracting investments in recent years from major technology companies including Microsoft, Amazon and Google. Market participants believe rising demand for AI servers, power systems and cooling infrastructure will continue to support regional copper consumption growth, particularly in Johor, Malaysia, which is becoming one of Southeast Asia’s key data centre clusters.

[SMM Shanghai Spot Copper] Outlook for next week: Shanghai spot copper premiums continued under pressure during the day. Suppliers consecutively lowered their offers throughout the day, with the premium center shifting notably downward, reflecting limited downstream acceptance of high copper prices and premiums, with purchasing driven mainly by rigid demand. In addition, the Shanghai-Guangdong price spread stayed high, with theoretical arbitrage opportunities persisting, which may attract east China cargo to be diverted to south China, diverting available cargo from the Shanghai market and providing some support for local spot discounts. Notably, next Friday is the delivery day for the May contract, and delivery logic is gradually emerging, which may provide bottom support for spot premiums. Overall, Shanghai spot copper premiums are expected to remain under pressure, but downside room is expected to be supported by delivery expectations.