SHANGHAI, Apr. 9 (SMM)–China International Capital Corporation (CICC) recently released research reports, which showed China's current copper stocks stand between 1.2-1.3 million mt. SHFE copper stocks and unrevealed stocks are at least more than 1.1 million mt, while copper stocks at domestic copper smelters and copper semis producers reach around 140,000 mt.
However, as China's copper stocks are high, and as China's copper demand in 2Q from end consumers is likely to remain weaker than that in past years, CICC holds the view that the falling speed of China's copper stocks is worrying, and that China's copper imports in the next few months will experience drops. CICC also believes some of the existing refined copper will probably be exported.
Besides, CICC also estimates global copper inventories may have amounted to about 2.8 million mt for the time being, with inventories at LME, SHFE, and Comex expected to total at 570,000 mt. Both global copper inventories and inventories at the three large exchanges are higher than levels before the 2008 financial crisis.
The reports also attached high importance to the changes in China's financing demand for copper and regarded this as the key risk for present copper markets. According to the reports, should financing demand continue to increase, China's copper imports will maintain at high levels even if domestic demand becomes lower.