Chinese Copper Inventory Surges Amid High Prices and Weak Demand
China's copper inventory has seen a significant increase due to high prices and weak demand. As of August 17, SMM copper cathode social inventory in China's major mainstream regions rose by 15,900 mt WoW from last Monday to 133,900 mt.
This represents an uptick of 200 mt compared to the same period last year, with inventory buildup across all regions. The pronounced backwardation structure has led to domestic smelters shipping copper to delivery warehouses in a concentrated manner, resulting in increased arrivals and further accumulation of inventories.
The weak consumption amid high copper prices is also contributing to the accelerated pace of inventory buildup. While this situation may impact market dynamics, it's essential to note that the data provided by SMM are for reference only and do not constitute decision-making recommendations.