China Copper Inventory Edges Up Amid High Prices
Copper social inventory in China has seen a slight increase, according to SMM's weekly data. As of August 6, copper inventories across major regions in China rose by 7,300 mt WoW (week-over-week) to 119,200 mt. However, when compared to the same period last year, total inventory fell by 12,800 mt YoY from 132,000 mt.
The divergence in inventory trends was observed across different regions, with Shanghai experiencing minimal fluctuations due to balanced inbound and outbound volumes. In contrast, Jiangsu and Guangdong saw a buildup in inventories, pressured by high copper prices and sluggish consumption.
Looking ahead, SMM expects the supply side to ease domestic pressure with near-term concentrated arrivals of domestic and imported cargo. However, on the demand side, high copper prices are likely to dampen purchase willingness among downstream processing enterprises during the traditional consumption off-season.