After the Dragon Boat Festival, China's copper social inventory shifted from destocking to inventory buildup [SMM weekly data]

SMM June 22 News:

Data Highlights: As of Monday, June 22, SMM copper inventories in major regions across China increased WoW, with total inventories reaching 208,100 mt, up by 78,500 mt from 129,600 mt in the same period last year. All regions saw inventory buildup.

Specifically, in Shanghai, concentrated arrivals of imported and domestic copper, combined with persistently weak end-use consumption, led to a notable increase in inventories. In Jiangsu, arrivals increased as smelter maintenance ended, leading to a rise in inventories. In Guangdong, production cuts at processing enterprises during the Dragon Boat Festival holiday and weakening downstream demand were the main reasons for the significant inventory accumulation.

Market Outlook: On the supply side, imported copper arrivals are expected to remain stable in the near term, while domestic copper supply is beginning to rise, gradually easing availability in the market. On the demand side, copper prices are fluctuating at highs, and the wait-and-see sentiment among downstream enterprises is intensifying. Surveys indicate that the operating rate of copper cathode rod plants is expected to increase to 65.4% this week, down 2.96 ppt WoW. Considering overall supply-demand performance, the market currently has ample supply but weak end-user purchasing willingness, so China's social copper inventories are expected to continue building next week.