SMM News on June 23:
As of Monday, June 23, copper inventories in major regions across China tracked by SMM decreased by 16,300 mt WoW from last Friday to 129,600 mt. Compared to the inventory levels on last Thursday, inventories in all regions across the country declined. Total inventories were 257,000 mt lower than the 386,600 mt recorded in the same period last year. Specifically, Shanghai's inventories were 167,200 mt lower than the same period last year, Guangdong's were 52,800 mt lower, and Jiangsu's were 36,400 mt lower.
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Breaking it down, inventories in Shanghai decreased by 11,900 mt compared to last Thursday. Both domestic and imported copper arrivals were low over the weekend, coupled with a significant outflow of warrants, leading to a notable decline in inventories in the region. Inventories in Jiangsu decreased by 400 mt compared to last Thursday to 15,100 mt. In Guangdong, inventories decreased by 3,700 mt to 15,500 mt. Recently, arrivals in the region have been low, and consumption has strengthened, as reflected by the continuous increase in Guangdong's daily average outflows from warehouses.
Outlook for the coming week: Both domestic and imported copper arrivals are expected to be limited this week, and total supply is anticipated to decrease compared to last week. On the consumption side, consumption is expected to be slightly better than last week. According to our survey, the weekly operating rate of copper cathode rod is projected to be 76.23% this week, up 0.41 percentage points WoW and 7.21 percentage points YoY. Therefore, we believe that there will be a situation of reduced supply and increased demand this week, and inventories are expected to decrease slightly.
