Copper Inventories in China's Major Regions Continued Destocking for Seven Consecutive Weeks [SMM Weekly Data]

SMM April 27 News:

Data Brief: As of Monday, April 27, SMM copper inventories across major regions nationwide decreased by 10,300 mt WoW to 248,600 mt, with total inventory up 93,500 mt compared to the same period last year at 155,100 mt, marking the seventh consecutive week of destocking.

Specifically, imported arrivals in Shanghai remained stable, domestic supply stayed tight, downstream just-in-time procurement was steadily released, and inventory continued to decline; in Jiangsu, domestic arrivals contracted notably, warehouse withdrawals maintained a steady pace, driving continued inventory pullback; Guangdong also continued the destocking trend, as smelting maintenance suppressed domestic arrivals, coupled with rising downstream stocking ahead of the Labour Day holiday and marginal improvement in consumption, jointly supporting steady regional inventory decline.

Market outlook: on the supply side, imported arrivals are expected to remain stable, domestic arrivals will stay low, and the overall tight supply pattern is unlikely to change in the short term. Demand side, downstream enterprises primarily make just-in-time procurement, with overall consumption pace slightly weakening; however, as the Labour Day holiday approaches, pre-holiday restocking demand is gradually being released, providing a phased boost to consumption. Surveys showed that the copper cathode rod operating rate this week was expected to pull back to 67.24%, down 2.13 percentage points WoW. Considering overall supply-demand performance, the current copper market exhibits characteristics of tight supply and pre-holiday stockpiling boosting demand, and social inventory is expected to continue destocking in the short term.