As of Friday August 18, copper inventories in the domestic bonded zones decreased 3,300 mt from August 11 to 64,000 mt, according to the latest SMM survey.
Inventories in the Shanghai bonded zone dropped 1,900 mt to 55,500 mt. Inventories in the Guangdong bonded zone fell 1,400 mt to 8,500 mt.
The SHFE/LME copper price ratio continued to recover this week. This, combined with the high premiums in the domestic spot market, ensured high import profit, incentivising shipments from bonded zone inventories.
While arriving shipments increased at the week’s end, most of the cargoes had been purchased by the market. Inventories in the bonded zones are expected to fall further due to import profit.
