SHANGHAI, May 7 (SMM) – SHFE copper stocks, having dropped for fifth consecutive weeks, reached 213,800 mt as of May 3, down 33,800 mt from the peak level.
The decline in stocks reflects the improvement in downstream demand. The SMM survey shows that average operating rate at copper wire cable producers for April was 81.51%, up 2.57% MoM and up 7.27% YoY. The rate in May is expected to climb up to 85%, suggesting that downstream demand will be strong.
Last Friday, LME copper inventories were down 7,425 mt to 608,700 mt, and over 6,000 mt of goods were flowing out of Asian warehouses, down 12,900 mt from the highest level.