As of Friday May 19, SMM copper inventory across major Chinese markets stood at 123,500 mt, down 17,600 mt from Monday and 28,500 mt from last Friday. Compared to Monday, copper inventories fell across China’s major markets. The total inventories increased 3,600 mt from 119,900 mt in the same period last year.
Inventories in Shanghai decreased16,800 mt from the same period last year. The inventories were 14,000 mt higher than the same period last year, those in Jiangsu were 3,900 mt higher, and those in Chongqing were 2,000 mt higher.
Compared with Monday, inventories in Shanghai fell 7,600 mt to 69,700 mt, inventories in Guangdong decreased 8,100 mt to 40,000 mt, inventories in Jiangsu dropped 600 mt to 8,000 mt, inventories in Tianjin dipped 500 mt to 1,000 mt. Thanks to the continuous decline in copper prices, the price difference between copper cathode and copper scrap shrank sharply. This turned most downstream buyers to purchase copper cathode, leading to declines in copper inventories across China’s major markets. It is worth noting that Guangdong’s inventory dropped the most this week. In addition to the improvement in consumption, the decrease in arrivals also drove down inventories. Smelters outside Guandong have reduced shipments to Guangdong due to improving local consumption.
SMM understood that the import window has reopened, thus the customs clearance of imported copper will grow next week. Supply will increase. On the demand side, copper prices are showing signs of rebounding, and demand is expected to drop compared with this week. In aggregate, SMM expects supply to grow and demand to weaken next week. And inventory would grow slightly.
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