As of Friday June 2, SMM copper inventory across major Chinese markets stood at 111,100 mt, down 7,200 mt from Monday and 7,300 mt from last Friday. Compared with Monday, the inventories across most regions decreased this week. Only inventories in Jiangsu increased slightly.
The inventory in Shanghai decreased by 800 mt to 65,700 mt compared with Monday, and the inventory in Jiangsu increased slightly by 300 mt compared with Monday. This week, there was an inflow of imported copper in east China, coupled with the rise in copper prices, the downstream replenishment decreased from last week. As such, the inventory declines in east China were insignificant this week. Inventories in Guangdong decreased 6,200 mt to 33,200 mt.
More imported copper will enter domestic market next week, while shipments arrivals of domestic copper will change little. The total supply will grow compared with this week. Downstream demand is expected to be better than this week on ample cash flows at the beginning of the month. To sum up, SMM expects supply to grow and demand to increase next week. And inventory would fall slightly further.
Commerzbank Lowers Price Forecast for Copper, Aluminium, Zinc and Nickel for 2023 and 2024
