Copper Inventory in Major Chinese Markets Fell This Week

SHANGHAI, Mar 24 (SMM) - As of Friday March 24, SMM copper inventory across major Chinese markets stood at 200,100 mt, a sharp decline of 18,700 mt from Monday and 26,100 mt from last Friday. Total inventories added 3,400 mt from pre-CNY levels, rolling back all gains post-CNY holidays. This is the first inventory decline for four consecutive weeks since end-December 2022. Compared with Monday, copper inventories fell across all regions. Total domestic inventories added 51,200 mt from 148,800 mt in the same period last year. Inventories in Shanghai were 25,700 mt higher than the same period last year, those Guangdong were 11,400 mt higher, those in Jiangsu were 11,200 mt higher and those in Chongqing increased 2,900 mt.

In detail, the inventories in Shanghai dropped 12,400 mt from Monday to 115,700 mt, and those in Jiangsu fell 2,200 mt to 19,400 mt. While downstream stockpiling was lower than the week prior, shipments arrivals declined, reducing total inventories in east China. Inventory in Guangdong decreased by 700 mt from Monday to 53,600 mt. Arriving shipments in Guangdong increased and consumption weakened, resulting in lower daily average shipments from Guangdong. The inventory decline in Chongqing is attributable to local stronger consumption.

Sellers will be rush to liquidate stocks at the month-end, so the supply should increase next week. Downstream purchasing interest will fall. In aggregate, SMM expects supply to grow and demand to weaken next week, slowing the inventory decline compared to this week.