National copper social inventory buildup to 90,300 mt [SMM weekly data]

SMM, September 14:

Data summary: As of Monday, September 14, SMM national mainstream copper inventories across China increased by 5,200 mt WoW from last Monday to 90,300 mt. Total inventories decreased by 63,900 mt compared to 154,200 mt in the same period last year.

By region, in Shanghai, copper prices pulled back notably on Friday. Although downstream users actively priced orders, cargo pick-up was not fully realized. Combined with small arrivals of imported and domestic supply, inventories saw some buildup. In Jiangsu, consumption improved due to the copper price pullback, and inventories saw slight destocking. In Guangdong, with delivery approaching and a large price spread between futures contracts, suppliers were actively shipping to delivery warehouses. However, after copper prices pulled back on Friday, demand recovered, and inventories also saw slight destocking.

Looking ahead, on the supply side, arrivals of domestic and imported copper cathode increased. On the demand side, with delivery approaching and copper prices pulling back, downstream purchasing demand is gradually being released, and consumption is recovering. Surveys show that the operating rate of copper cathode rod is expected to decrease to 60.01% this week, down 1.48 percentage points WoW. Overall, with spot supply easing and end-user purchasing momentum rebounding, national electrolytic copper social inventories are expected to see slight destocking this week.