China Copper Cathode Inventory Sees Significant Drawdown Across All Regions
Copper cathode social inventory in China has seen a significant drawdown across all regions. According to data from SMM, as of August 24, copper inventories decreased by 19,700 mt WoW (week over week) to 114,200 mt, with total inventories compared to the same period last year decreasing by 8,800 mt.
The decrease in inventory is attributed to downstream consumption recovering and shrinking cargo arrivals in Guangdong. In Shanghai and Jiangsu, previously suppressed demand was released after copper prices pulled back earlier. This led to a significant reduction in inventory across both regions.
The market outlook suggests that domestic and imported copper cathode arrivals are expected to pull back slightly in the short term. Demand is expected to consolidate at highs after pent-up releases are digested, leading to weak downstream consumption patterns. The survey shows that this week's copper cathode rod operating rate is expected to increase to 59.96%, down 1.24 percentage points WoW.