SMM, June 29:
As of Monday, June 29, copper inventories across major Chinese regions edged down 0.07 mt WoW from last Monday and increased 1,400 mt from last Thursday, bringing total inventories to 207,400 mt. Total inventories rose 81,300 mt compared to 126,100 mt in the same period last year, with mixed regional performances.
In detail, Shanghai saw higher port arrivals of imported copper, but the pullback in copper prices spurred downstream procurement, and faster warehouse withdrawals led to a slight inventory decline. Jiangsu's end-use consumption recovered concurrently, sustaining inventory destocking. Guangdong, meanwhile, showed weak consumption and concentrated arrivals, resulting in a notable regional inventory buildup.
Market outlook: In the near term, arrivals of imported and domestic copper are expected to increase, keeping overall spot supply ample. After copper prices consolidated higher, downstream wait-and-see sentiment re-emerged. Our survey indicates that the operating rate of copper cathode rod producers is expected to rise to 67.77% this week, up 2.37 percentage points WoW. Based on the combined supply-demand picture—ample supply and cautious demand—China's social inventory of copper cathode is expected to edge up next week.
