China's Mainstream Regional Copper Social Inventory Flat WoW [SMM Weekly Data]

SMM June 1 News:

Data Brief: As of Monday, June 1, SMM copper inventories across major regions nationwide were flat WoW, with total inventory at 245,200 mt, an increase of 92,200 mt compared to the same period last year (153,000 mt).

Specifically, in Shanghai, both imported and domestic arrivals declined, and coupled with a phased pullback in copper prices, consumption improved slightly, jointly driving some destocking. In Jiangsu, downstream purchasing enthusiasm increased due to falling copper prices, and regional inventory edged down. In Guangdong, end-use consumption remained persistently weak, while increased smelter arrivals entered warehouses, leading to a notable inventory buildup.

Market Outlook: In the short term, imported and domestic copper arrivals remain low, and overall market supply is tight. Demand side, copper prices are currently at elevated levels, with downstream buyers mostly adopting a wait-and-see approach, and overall demand remains weak. Survey data showed that copper cathode rod operating rates are expected to rise to 61.61% this week, up 4.68 percentage points WoW. Considering overall supply-demand performance, short-term market supply is tight and demand is sluggish, with social inventory showing a slight buildup trend.