Chinese Copper Social Inventory Hits 117,200 Mt Amid Weak Demand

China's copper social inventory has slightly accumulated, reaching 117,200 mt as of July 27. This marks an increase of 5,300 mt compared to the previous week.

The total inventory is lower than last year at this time by 3,100 mt. However, expectations for inventory buildup are noted across all regions, indicating a potential for further accumulation in the coming weeks.

Regionally, Shanghai saw an increase in domestic copper cathode arrivals and continued supplementation from imported sources, leading to inventory accumulation due to weak downstream demand. Jiangsu experienced limited inventory changes with relatively small fluctuations. Guangdong registered higher arrivals but sluggish end-use consumption pushed inventories higher.

The market outlook is for supply-side recovery, with domestic and imported copper cathode arrivals expected to modestly increase in the near term, slightly easing the tightness of circulating spot cargo. Demand-side pressures remain strong, however, as fluctuating copper prices weigh on enterprise production enthusiasm and downstream just-in-time procurement willingness remains relatively weak.