Copper Inventories in China's Major Regions Continued Destocking for the Fifth Consecutive Week Over the Weekend [SMM Weekly Data]

SMM April 13 News:

Data Brief: As of Monday, April 13, SMM copper inventories across major regions nationwide decreased 12.52% WoW from last Monday, marking five consecutive weeks of destocking.

Specifically, in Shanghai, imported copper arrivals remained stable while domestic arrivals decreased somewhat; downstream buyers mainly made just-in-time procurement, and inventory destocked steadily. In Jiangsu, domestic arrivals declined, but the pace of warehouse withdrawals also slowed down simultaneously, with regional inventory basically stable. In Guangdong, the prior destocking trend continued, mainly supported by reduced arrivals and robust end-use consumption, with inventory continuing to pull back.

Outlook: On the supply side, imported copper arrivals were intermittent, the pace of domestic arrivals slowed down, and an overall tight supply pattern is emerging. On the demand side, downstream buyers still mainly made just-in-time procurement, with overall consumption slowing down slightly compared to the previous period. According to survey data, the weekly operating rate of copper cathode rod is expected to decline to 75.58% this week, down 4.39 percentage points WoW. Considering both supply and demand sides, the market has formed a pattern of "tightening supply and phased stabilization of consumption," and social inventory is expected to continue destocking this week.