China's Copper Social Inventory Sees Slight Decline Amid Weak Consumption Recovery
Ahead of China's National Day holiday, copper social inventory saw a slight decline due to weak consumption recovery in the October peak season. According to Shanghai Metals Market analysis, the operating rate of China's copper cathode rod enterprises dropped notably this week, while raw material and finished product inventories at processing plants showed structural divergence.
As of September 30, copper inventories in major regions across China edged down month-on-month (MoM), with total volume pulling back by 1,100 mt to 73,700 mt. The production pace of China's copper cathode rod slowed down in phases this week due to holiday factors.
The operating rate of major copper cathode rod enterprises in China came in at 64.75% in the final week before the holiday (September 25-October 1), down 5.15 percentage points MoM. However, rigid downstream demand was released in a concentrated manner before the holiday, and enterprises actively rushed to fulfill orders and stockpiled in advance.
Looking ahead to October, multiple factors are expected to weigh on industry sentiment, including extended holiday shutdowns that will significantly drag on monthly operating rates, high copper prices continuing to curb consumption, and no clear recovery signal for the traditional 'Golden October.'