Copper Stocks Show Mixed Trends In Mainstream Chinese Markets

The copper stocks in mainstream markets of Guangdong, Tianjin, Shanghai, Jiangsu etc. showed mixed trends from Monday to Friday. Copper stock inventory fluctuated in a short time span. Since December 2023, the domestic inventory has accumulated for 7 consecutive weeks, yet the rate of weekly accumulation has started to fall this week.

The total inventory of copper stocks increased by 15,200 metric tons from a week earlier but decreased by 1,500 metric tons from Monday to 312,900 metric tons.

Inventory Changes Across China

China’s copper stock inventories changed in various ways, with the total inventory rising by 127,600 metric tons from 185,300 metric tons in the same period last year. In many parts of China, including Shanghai, Guangdong, Jiangsu, Zhejiang, Chongqing, and Chengdu, the inventory was higher than in the same period last year.

Inventory Changes In Eastern China

Eastern China’s inventory levels displayed a mixed pattern, with Guangdong and Tianjin experiencing a decline while Shanghai and Jiangsu experienced a rise. Inventory rose by 1,900 metric tons to 186,600 metric tons in Shanghai, and by 1,000 metric tons to 52,600 metric tons in Jiangsu. The expansion was brought on by a delayed upstream recovery and ongoing shipments from northern China. Due to the active transfer of cargoes from smelters in north China to east China and the restart of production by local downstream enterprises, the inventory in Guangdong decreased by 5,300 metric tons to 55,500 metric tons.

Supply And Consumption

After the Chinese New Year holidays, a significant producer has been operating at full capacity, and other downstream producers have started up again this week, which has raised consumption in Guangdong. As the SHFE front-month copper contract delivery date approaches, more shipments from smelters are anticipated. The total number of arrivals, however, is anticipated to increase slightly the next week due to the limited arrival of seaborne copper cargoes. However, as more businesses resume production, the downstream consumption will rise.

Insight

The south Chinese market was lively whereas the north Chinese market was dull. Given that both supply and demand will increase next week, the inventory of copper stocks is anticipated to decrease.

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