Shanghai bonded copper stocks rose for 4th week

SHANGHAI, Jun 19 (SMM) – Stocks of copper in Shanghai bonded areas rose for a fourth straight week as of June 19, but the increase slowed from a week ago as the import window reopened. 

SMM data showed that the stocks expanded 1,300 mt in the week ended June 19 to 217,500 mt, following a build of 3,200 mt in the prior week.

Demand for copper imports weakened last week amid unfavourable import price ratios and deepening spot discounts in the domestic market. This drove traders to move imported copper into the bonded warehouses. 

However, spot copper offers flipped to high premiums this week as tight supply from domestic smelters and slower inflow of seaborne copper facilitated the decline in copper social inventories. This saw the import arbitrage window reopened, prompting the shipments from bonded areas to the domestic market, which accounted for the slower increase in the bonded stocks this week.