Copper Social Inventory Down Significantly WoW, Supply Tightening Sustains Inventory Downtrend [SMM Weekly Data]

SMM News, July 6:

Data Summary: As of Monday, July 6, SMM copper inventories in major regions across China decreased by 15,200 mt WoW from last Monday to 192,200 mt. Total inventory increased by 49,300 mt compared to the same period last year's 142,900 mt, with all regions showing destocking.

Specifically, in Shanghai, arrivals of both imported and domestic copper continued to pull back, and inventories continued the destocking trend. In Jiangsu, the pace of inbound and outbound shipments was basically flat, with limited inventory fluctuations. In Guangdong, arrivals of domestic copper decreased significantly, driving down regional inventories.

Market Outlook: In the short term, arrivals of imported copper and domestic copper cathode are expected to remain low, and overall market supply will be tight. On the demand side, copper price consolidation is weighing on downstream purchase willingness; enterprises mostly make just-in-time procurement, and stockpiling enthusiasm is weak. Survey shows that the operating rate of copper cathode rod this week is expected to increase to 68%, up 0.23 percentage points WoW. Taking into account supply-demand dynamics, the market will see tight supply and persistent just-in-time procurement in the short term. China's copper social inventory is expected to continue destocking next week.