National copper social inventory falls to 85,100 mt, regional destocking diverges [SMM weekly data]

SMM, September 7:

Data summary: As of Monday, September 7, SMM national mainstream regional copper inventories fell 17,000 mt WoW to 85,100 mt, with total inventories down 61,800 mt from 146,900 mt in the same period last year.

By region, Shanghai saw only small arrivals of domestic and imported cargoes, and with consumption support, inventories continued to draw down; Jiangsu had few arrivals, consumption last Friday was moderate, and inventories kept declining; Guangdong saw a slight inventory buildup due to increased arrivals of domestic cargoes.

Looking ahead, supply-side arrivals of domestic and imported copper cathode are expected to remain steady; demand-side high copper prices continue to suppress end-use consumption, with purchases mainly need-based. The survey shows copper cathode rod operating rate is expected to increase to 60.49% this week, up 1.36 percentage points WoW. Overall, with stable spot supply and limited end-use purchasing, national copper cathode social inventory is expected to see a slight buildup this week.