The Speed Of The Overall Decline in Copper Stranded Wire Market Inventories Is Getting Tighter

The shock pattern may remain in the near future. According to statistics, as of May 10, the social inventory of rebar was 6.5243 million tons, down 552,700 tons from the previous month, the steel mill inventory was 2.0957 million tons, up 12,000 tons from the previous month; the social stock of wire rods was 1.9965 million tons, down 129,700 tons from the previous month. The inventory of steel mills was 585,800 tons, an increase of 1,400 tons from the previous month; the social inventory of hot-rolled coils was 2,210,200 tons, a decrease of 74,900 tons from the previous month, and the inventory of steel mills was 958,100 tons, a decrease of 9,000 tons from the previous month.

Judging from the changes in data, the rate of decline is still maintained, but the overall rate of decline in the copper stranded wire market inventory is getting tighter and tighter. In the same period last month, the factory warehouse and social inventory fell by 1.2814 million tons. According to the latest data, the factory inventory and social inventory fell by 758,200 tons, but the factory inventory increased. Social inventories still maintained a rapid decline this week. However, it should be noted that in terms of in-plant inventories, both threads and wires have rebounded month-on-month.

After the spot price returned to the high level of the year, traders' motivation to buy goods weakened, and speculative demand slowed down. At the same time, steel production still increased slightly this week, and supply continued to pick up under the stimulus of profits. Spot faces adjustment risk in the short term. Even if spot traders are willing to support prices, the general trend is difficult to change. The market as a whole maintains a volatile pattern. Once the correction is in place, or the market is boosted by major positive factors, investors can enter the market in batches as appropriate.