China Copper Inventory Edges Up Amid Weakened Demand
Copper social inventory in major regions across China increased by 7,300 mt WoW to 119,200 mt as of August 6, according to SMM weekly data. This represents a slight buildup from last week's numbers.
The total inventory fell by 12,800 mt YoY from 132,000 mt in the same period last year, indicating a decrease in overall storage levels.
In specific regions, Shanghai saw little inventory fluctuation due to balanced inbound and outbound volumes. In contrast, Jiangsu experienced weak downstream demand due to high copper prices, leading to a slight buildup in inventories. Guangdong's increased arrivals combined with sluggish consumption pushed inventories higher.
The supply side is expected to ease domestic supply pressure with near-term concentrated arrivals of domestic and imported cargo. However, the demand side will likely be dampened by high copper prices, further decreasing purchase willingness among downstream processing enterprises.