SMM April 20 News:
Data Brief: As of Monday, April 20, SMM copper inventories in mainstream regions nationwide decreased 12.21% WoW, with total inventory up 66,700 mt YoY, marking six consecutive weeks of destocking.
Specifically, in Shanghai, imported arrivals increased marginally while domestic arrivals remained relatively low; combined with the widening Shanghai-Guangdong price spread driving warehouse withdrawals, overall inventory continued to decline. In Jiangsu, affected by smelter maintenance, domestic arrivals dropped significantly, while the pace of warehouse withdrawals remained stable, further driving destocking. In Guangdong, the prior destocking trend continued; although downstream consumption pulled back slightly, domestic arrivals remained consistently low due to factors such as maintenance and increased local consumption, which remained the core support for continued inventory decline.
Outlook: Supply side, imported sources are expected to gradually replenish the market, but overall domestic arrivals remain at relatively low levels, and the tight supply pattern has not fundamentally changed. Demand side, downstream enterprises still primarily make just-in-time procurement, with the overall consumption pace slowing down slightly compared to the prior period. According to survey data, the weekly operating rate of copper cathode rod is expected to drop to 72.38% this week, down 5.43 percentage points WoW. Considering both supply and demand sides, the market has formed a pattern of "tightening supply and slightly slowing consumption," and social inventory is expected to continue destocking this week.
