【SMM Copper Inventory Flash】National mainstream copper cathode inventories recorded 207,400 mt, up 1,400 mt WoW from last Thursday, with regional trends diverging. Shanghai and Jiangsu continued destocking, supported by a pullback in copper prices and recovering downstream demand; in Guangdong, weak end-use demand, combined with a notable increase in arrivals, led to a sharp inventory buildup.

【SMM Copper Inventory Alert】Copper cathode inventories in mainstream regions across China accumulated slightly MoM. In the Shanghai market, the pullback in copper prices boosted downstream purchasing, causing inventories to shift from an increase to a decrease; in Jiangsu, the pullback in copper prices drove a recovery in end-use demand, and inventories declined in tandem; in Guangdong, mid-year downstream consumption slowed down, and smelters increased shipments into warehouses, resulting in a continued inventory buildup in the region.

[SMM Shanghai Spot Copper] Tomorrow is expected to see spot prices against the SHFE copper 2607 contract remain at current levels. Shanghai social inventory stood at 139,400 mt, up 7,400 mt WoW from the previous Thursday; Jiangsu inventory was 44,400 mt, up 2,500 mt WoW, indicating a mild inventory buildup. SMM attributes the buildup mainly to arrivals from some domestic smelters and inflows of imported cargo, adding pressure on the supply side. Spot market activity was sluggish throughout the day. Suppliers initially quoted premiums at parity to 30 yuan/mt but, with insufficient follow-through buying, subsequently cut offers several times. By the second session, standard-quality copper traded at discounts of 50–30 yuan/mt, with some suppliers liquidating cargo and further dragging the premium center lower. Overall demand was weak, as downstream users made only just-in-time procurement and showed limited willingness to chase higher prices. Given inventory pressure and a stronger willingness to sell among suppliers, spot prices are expected to hold at current levels.

【SMM Copper Inventory Flash】In China's major regions, copper cathode inventories continued the destocking trend MoM. In the Shanghai market, arrivals of imported and domestic copper remained low, persistently driving down inventories. In the Jiangsu region, limited supply of arrivals, coupled with accelerated downstream warehouse withdrawals, pushed inventories down in tandem. Ahead of the Dragon Boat Festival, end-user stockpiling sentiment in Guangdong was sluggish, leading to a slight inventory buildup in the region.

【SMM Copper Inventory Flash】National copper cathode inventories declined MoM. In Shanghai and Guangdong, lower arrivals combined with improved downstream consumption following a pullback in copper prices led to destocking. In Jiangsu, on the other hand, arrivals remained normal while consumption remained weak, resulting in some inventory buildup.

[SMM Copper Inventory Update] China's overall copper cathode inventories destocked on a MoM basis. In the Shanghai market, arrivals of domestic and imported copper were low, and inventories continued to pull back. Jiangsu inventories fell in tandem. In Guangdong, spot supply remained tight, and the copper price pullback stimulated concentrated end-user buying, leading regional inventories to also decline.

SMM June 8: Data Summary: As of Monday, June 8, SMM copper inventory in major regions across China fell WoW to 233,000 mt, up 83,500 mt from 149,500 mt in the same period last year. Specifically, in Shanghai, warehouse withdrawals were steady, but arrivals of imported and domestic copper cathode stayed low, leading to steady destocking. In Jiangsu, insufficient arrivals pushed inventory down in tandem; in Guangdong, tight supply persisted, while weaker copper prices drove concentrated restocking by end-users, further reducing regional inventory. Market Outlook: In the short term, arrivals of imported and domestic copper are likely to stay low, keeping overall supply tight. On the demand side, the recent pullback in copper prices has spurred downstream purchasing sentiment, with demand recovering. A survey shows that the operating rate of copper cathode rod is expected to decline to 61.32% this week, down 4.41 percentage points WoW. Based on supply-demand dynamics, with tight supply and recovering demand in the short term, China's social copper inventory is expected to see slight destocking next week.

【SMM Copper Inventory Flash】National copper cathode inventory decreased MoM, with varied performance across regions. In Shanghai, narrower arrivals coupled with faster downstream cargo pick-up led to significant destocking; Jiangsu saw basically flat inbound and outbound; Guangdong’s reduced arrivals drove inventory down simultaneously.

The COMEX-LME copper price spread has continued to widen over the past two weeks, reaching approximately $400/t by late May and touching a recent high of $500/t. With the cross-market arbitrage window remaining open, traders have accelerated the cancellation of LME registered warrants and the transfer of material to the United States. LME copper inventory drawdowns have picked up pace, falling 3,375 tonnes on May 29th to 386,050 tonnes — a fresh 10-week low. Cancelled warrants currently account for 30.87% of total LME copper inventory, with more than half concentrated in US LME warehouses, reflecting clear intent to move metal. Meanwhile, COMEX copper inventories have continued to build to approximately 575,000 tonnes. According to SMM, CIF Shanghai COMEX registered bill-of-lading warrants

【SMM Copper Inventory Update】Nationwide copper cathode inventories remained flat WoW, with mixed performance across regions. In Shanghai, arrivals decreased, and consumption improved slightly as copper prices pulled back, leading to notable destocking; Jiangsu saw a similar trend; consumption in Guangdong remained persistently weak, with inventories rising significantly.