SMM, August 3:
Data Brief: As of Monday, August 3, SMM copper inventories in major regions of China increased by 6,200 mt WoW to 118,900 mt. Total inventories decreased by 17,000 mt compared to 135,900 mt in the same period last year, with regional divergences.
Specifically, in Shanghai, arrivals of domestic copper increased, and import supply continued to supplement, coupled with weak downstream demand, resulting in some inventory buildup. In Jiangsu, arrivals were relatively low, and inventories saw a slight destocking. In Guangdong, arrivals rose, but consumption has not yet improved, and inventories continued to rise.
Market Outlook: On the supply side, arrivals of domestic and imported copper cathode are expected to rebound slightly in the short term, easing the tightness in spot circulation somewhat. On the demand side, high copper prices are weighing on enterprises' production willingness, and downstream just-in-time procurement sentiment remains weak. A survey shows that the operating rate of copper cathode rod is expected to drop to 59.72 this week, down 0.35 percentage points WoW. Under the overall supply-demand pattern, domestic spot supply is marginally looser, and end-user procurement remains sluggish. This week, national social inventories of copper cathode are expected to continue their buildup trend.
