Copper Inventory in Major Chinese Markets Declined This Week, Will the Drop Continue?

As of Friday April 14, SMM copper inventory across major Chinese markets decreased by 4,600 mt from Monday April 10 to 190,100 mt. down 12,200 mt from last Friday. Inventories increased 6,000 mt in Shanghai. Those in Guangdong, Jiangsu and Tianjin fell 1,200 mt, 2,500 mt and 300 mt respectively. The stocks in Zhejiang and Jiangxi remained unchanged.

Downstream buyers purchased as required as copper prices continued to climb. However, with the expansion of import losses, the inflow of imported copper decreased during the week, so inventories dropped in some regions.

Arriving shipments of domestic copper in Shanghai due to the delivery of the SHFE 2304 copper contract led to a slight increase in inventories.

Next week, import losses can hardly improve, and this will limit the inflow of imported copper. Some cargoes under warrants will be offered for sale after the delivery. Copper inventories should fall slightly.