SHANGHAI, Mar 31 (SMM) – As of Friday March 31, SMM copper inventory across major Chinese markets stood at 201,900 mt, up 9,600 mt from Monday and 1,900 mt from last Friday. Total inventories added only 5,300mt from pre-CNY levels, snapping a destocking for four consecutive weeks. Compared with Monday, copper inventories increased across most regions. Total domestic inventories added 64,200 mt from 137,700 mt in the same period last year. Inventories in Shanghai were 42,100 mt higher than the same period last year, those in Guangdong were 6,400 mt higher, those in Jiangsu were 11,400 mt higher and those in Chongqing increased 2,500 mt.
In detail, the inventory in Shanghai grew 8,600 mt to 115,700 mt from Monday, and that in Tianjin increased 1,000 mt to 2,000 mt. Inventories in other regions changed little. Cash crunch at the month-end combined with continuous rise of copper prices weakened downstream buying interest. This can be reflected in the low daily average shipments from Guangdong. The influx of imported copper in Shanghai also accounted for higher inventory.
SMM understood that the customs clearance of imported copper will further increase next week, and the total supply is expected to increase compared with this week. In terms of consumption, the downstream purchasing enthusiasm at the beginning of the month will be stronger than this week, even as high copper prices will still restrain consumption. To sum up, SMM expects both supply and demand to increase next week. And inventory would grow further next week.
