Shanghai – May 2025 — Copper inventories in warehouses managed by the Shanghai Futures Exchange (SHFE) have posted a significant recovery this week, rising 34% to 108,142 metric tonnes. The sharp increase ends several consecutive weeks of destocking, which had been driven largely by strong export flows to the United States and robust domestic demand.
The rebound in SHFE copper stocks suggests a shift in short-term supply dynamics, as inflows into the warehouse system have outpaced recent drawdowns. Market analysts attribute the build-up to improved shipment arrivals and a moderation in export activity amid easing international demand pressures.
The surge in stocks also marks the first notable inventory replenishment in weeks, providing temporary relief to tight onshore supplies that had contributed to elevated domestic copper prices. While copper demand remains strong, especially in energy, construction, and electric vehicle sectors, the current uptick in inventories may help stabilize pricing in the near term.
The SHFE inventory data is closely watched as a barometer of physical market conditions in the world’s largest copper-consuming country. This latest increase may indicate improving supply chain flows or a potential easing of logistical constraints that had previously limited warehouse deliveries.
Despite the short-term inventory gain, broader market fundamentals remain supportive for copper, with global supply challenges, energy transition-driven demand, and macroeconomic uncertainties continuing to influence price volatility.
Traders and industrial users will be monitoring subsequent inventory reports closely to assess whether this rebound is a one-off or the beginning of a broader restocking trend.
