Copper Inventories in China's Major Regions Saw Minimal Changes This Week [SMM Weekly Data]

SMM May 14 Update:

Data Brief: As of Thursday, May 14, SMM copper inventories across major regions nationwide increased by 700 mt WoW from Thursday to 243,300 mt, with total inventory up 111,300 mt compared to the same period last year (132,000 mt).

Specifically, arrivals of both imported and domestic copper in Shanghai pulled back, while demand was dragged down by persistently rising copper prices, with subdued downstream transactions and relatively small overall inventory fluctuations. Inventory in Jiangsu remained flat from Monday, with the pace of inbound and outbound shipments staying stable. In Guangdong, domestic copper arrivals saw a notable increase, but high copper prices suppressed downstream processing enterprises' production and consumption, leading to a slight inventory buildup in the region.

Market outlook: Supply side, imported copper arrivals are expected to increase in the near term, while domestic copper arrivals are also expected to see a slight rebound. Demand side, as copper prices moderately pull back, rigid demand in the market is expected to be gradually released, though the overall recovery momentum remains limited. The current market features a pattern of relatively tight supply with rigid demand underpinning consumption. Social inventory is expected to continue a modest inventory buildup trend next week.