China's copper social inventory destocked slightly WoW, with significant divergence in regional trends [SMM weekly data]

SMM July 2 News:

Data highlights: As of Thursday, July 2, SMM copper inventories in major Chinese regions decreased by 6,100 mt WoW to 199,900 mt. Total inventories were 68,100 mt higher compared to 131,800 mt in the same period last year.

Specifically, in Shanghai, reduced arrivals of both imported and domestic cargoes, along with downstream enterprises gradually picking up goods, drove inventory destocking; the situation was similar in Jiangsu, where downstream demand recovered and inventories also pulled back; in Guangdong, the mid-year settlement coincided with multiple downstream enterprises making temporary production cuts, causing Guangdong's inventories to keep rising.

Looking ahead, on the supply side, imported cargo arrivals are expected to stay stable in the near term, while domestic cargo arrivals remain low. On the demand side, after copper prices stabilized, downstream buying sentiment weakened, with only just-in-time procurement being made. Currently, spot supply is generally tight, and the market is dominated by just-in-time purchases. National copper social inventories are expected to continue destocking next week.