CBI Holds A Different View on Rumored 800 KT of Secret Chinese Copper Stocks

SHANGHAI, Jul.11 (CBI China) -- Market rumors describe 800 kt of secret copper stocks in China, creating concern about future copper prices.  Rumors reported a portion of the stocks were in bonded warehouses, with the remainder held by China's State Reserve Bureau (SRB).  It is normal for the SRB hold copper stocks, and those stocks normally do not  affect supply and demand in the market as long as they are held by the SRB.  However, the volume of stocks in bonded warehouses change constantly, impacting on market prices.  According to CBI data, inventories held in bonded warehouses were 120 kt in April, and decreased in May.  Stocks were expected to rise in July during a slow demand period for copper, so CBI believes there are approximately 100 kt of copper stocks in China.