Shanghai Copper Market Struggles with Tight Supply and Low Inventory

The Shanghai spot copper market has seen tight supply and low inventory levels, leading to firm prices and limited sales.

According to SMM, current available supply is tight due to recent port congestion affecting the berthing and warehousing pace of imported copper. This has resulted in a diversion of domestic available supply as some market participants have increased their willingness to export.

The inventory levels are declining rapidly, with 114,200 mt recorded on August 24, down 20,200 mt from last Thursday. Suppliers are holding back from selling due to the low inventory pattern and tight spot supply expectations.

Despite the firm prices, restocking demand from downstream users and traders still exists, resulting in relatively active inquiries and transaction performance during the day.