SMM

As of Thursday, November 14, SMM copper inventories in major regions across the country decreased by 13,500 mt compared to Monday, reaching 164,300 mt, and decreased by 28,200 mt compared to last Thursday, marking the fourth consecutive week of weekly destocking with an accelerated destocking speed. Compared to Monday, inventories in all regions across the country decreased. Total inventory was 114,500 mt higher than the same period last year (49,800 mt), with Shanghai region 91,000 mt higher, Jiangsu region 16,700 mt higher, and Guangdong region 8,800 mt higher.

Specifically, Shanghai region's inventory decreased by 8,200 mt compared to Monday, reaching 128,700 mt. Jiangsu region's inventory slightly decreased by 1,600 mt to 18,400 mt. The decrease in inventory in east China was due to increased downstream procurement after the decline in copper prices and reduced arrivals of domestic copper. Guangdong region's inventory decreased by 2,600 mt to 14,700 mt. The Shanghai-Guangdong price difference widened, and increased arrivals of non-registered copper slowed down the destocking speed in Guangdong. However, recent consumption in Guangdong has been good, as reflected by the high daily outflows from warehouses in Guangdong.

Looking ahead, according to our understanding, the arrivals of domestic copper next week are still expected to be low, and total supply is expected to decrease compared to last week. On the downstream consumption side, the continuous decline in copper prices is expected to increase procurement by end-user enterprises. Therefore, we believe that next week will see a tight supply and increased demand, and weekly inventory is expected to continue to decrease.