SHANGHAI, Aug 22 (SMM) - As of Monday August 22, SMM copper inventory across major Chinese markets dropped 2,800 mt from last Friday to 58,500 mt. The total inventory dipped 84,500 mt compared with the same period last year when the inventory was recorded at 143,000 mt. In detail, the inventory in Shanghai added 1,100 mt to 47,500 mt, the inventory in Guangdong decreased 1,200 mt to 4,600 mt, and the inventory in Jiangsu dipped 500 mt to 3,300 mt, while the inventory in other regions stayed unchanged.
Power rationing cast an impact on the surrounding smelters, thus the arrival of copper in Shanghai decreased. And the overall supply in Shanghai stayed low even though the volume of imported copper rose slightly. In Guangdong, the arrival of domestic and imported copper was low, but the downstream consumption improved, hence the shipments flowing out of the warehouses in Guangdong kept growing.
Looking forward, it was reported that this week, the power rationing in east China is extending, and the market shall pay close attention to its impact on consumption. The inventory will rise only when the consumption weakens under the background of declining supply.
