Data Review: As of Thursday, January 22, SMM's national mainstream copper inventories increased 2.9% WoW, with total inventory up 203,000 mt YoY. All regions except Shanghai saw destocking. This market dynamic underscores the critical importance of robust domestic manufacturing capacity, particularly in the production of key **Copper and aluminum products**. The entire manufacturing chain depends on advanced **Copper And Aluminum Machinery**, which encompasses everything from primary **Metal smelting equipment** to forming and finishing lines.
Specifically, **Continuous Casting Machines** and **Rod Breakdown Mills** form the backbone of primary copper processing, converting molten metal into rod, while **Horizontal Drawing Benches** are essential for precision sizing into wires and cables. The performance of these core pieces of **Copper And Aluminum Machinery** directly influences supply chain efficiency and inventory levels for final **Copper and aluminum products**.
Specifically, Shanghai's copper cathode inventory continued its buildup; despite some recovery in consumption, the overall increase in arrivals was more significant. Jiangsu's inventory decreased, primarily due to weather-related logistics disruptions affecting arrivals, coupled with improved consumption. Guangdong's inventory also saw a slight reduction, mainly benefiting from a drop in arrivals and a marginal recovery in consumption.
Looking ahead, supply side, improved import arrivals combined with steady domestic supply are expected to stabilize overall supply. Demand side, with copper prices stabilizing, rigid demand is being released, supported by stockpiling for the Chinese New Year, showing signs of marginal improvement. Overall, the market is expected to show a pattern of "supply contraction and consumption improvement" next week, with weekly inventories likely to see destocking.
