As of Monday, September 2, SMM copper stocks in major regions across the country fell significantly by 14,500 mt WoW to 264,600 mt, continuing the drop trend. However, total stocks were still 167,900 mt higher YoY compared to 96,700 mt last year, with Shanghai up 104,000 mt, Guangdong up 38,200 mt, and Jiangsu up 27,900 mt YoY.
Specifically, Shanghai stocks fell by 9,800 mt WoW to 174,200 mt, and Jiangsu stocks fell by 1,100 mt WoW to 34,500 mt. It is reported that the arrivals of both imported and domestic copper in east China decreased over the weekend, which was the main reason for the stock decline. Guangdong stocks fell by 3,600 mt WoW to 52,400 mt, mainly due to reduced arrivals and increased outflows from warehouses, as reflected by the rebound in Guangdong's daily outflows.
Looking ahead, it is reported that domestic supply will decrease this week due to production cuts at smelters, and the arrivals of imported copper will be delayed due to port inspections, leading to a decrease in total supply compared to last week. On the demand side, copper prices have fallen back from highs, and enterprises with ample funds in early September are expected to increase procurement. Therefore, we believe that this week will see a decrease in supply and an increase in demand, with weekly stocks expected to continue to decline.
