As of Friday June 30, SMM copper inventory across major Chinese markets stood at 99,100 mt, up 11,400 mt from Monday and up 15,900 mt from June 21. Inventories accumulated after falling for seven consecutive weeks. Compared with the data on Monday, the inventory in all regions of China increased except that in Tianjin. The total inventories decreased 27,100 mt from 126,200 mt in the same period last year. Inventories in Shanghai decreased 24,100 mt from the same period last year. The inventories in Guangdong were 1,100 mt lower than the same period last year, and those in Jiangsu were 2,200 mt lower.
The inventory in Shanghai increased by 7,900 mt to 62,000 mt compared with Monday. SMM understood that there were large volumes of arriving shipments in Shanghai this week, including imported and domestic copper. Inventory in Guangdong increased by 3,000 mt to 28,800 mt compared with Monday. As the mid-year settlement is approaching, upstream smelters are liquidating inventories, while downstream buyers refrain from purchasing due to cash flow issues.
There will be a large volume of imported copper entering the domestic market after customs clearance next week. But shipments arrivals of domestic copper will change little. The total supply will grow compared with this week. The demand is expected to increase after the completion of mid-year settlement. As such, inventory will grow.
