Shanghai Bonded-Zone Copper Inventories Fall in July, SMM Reports

Commerzbank said on Thursday December 2 that it expects that by the end of next year, the copper prices should be trading around $9,500/mt.

The copper inventories across major Chinese markets fell 12,600 mt from a week earlier to 82,600 mt as of Friday November 12, according to SMM data, which is also the first time the inventory fell below 90,000 mt this year.

The copper prices surged again after the National Day holiday. The US dollar index fell below 94 from a high of 94.5. The US crude oil prices have jumped to $82/barrel after rising for more than one month, driving a rally in the global industrial product prices. The global copper inventories are at a historical low. The LME copper cash-to-three-month backwardation expanded rapidly to $257/mt after breaking through $100/mt, setting a new high since 2007. LME copper exceed $10,000/mt to a high of $10,300/mt, with a weekly increase of 9.25%.

SMM data showed that the stocks of copper in Shanghai bonded areas fell 11,400 mt from last Friday August 6 to 380,700 mt as of August 13, falling for five consecutive weeks, while de-stocking slowed from last week.

SMM data showed that copper inventories across mainstream areas in China fell 10,500 mt from this Monday to 159,500 mt as of Friday August 13.

Copper inventories in domestic mainstream areas decreased on weakened de-stocking.

This is a roundup of China’s base metals output in March. SMM surveyed major producers in the market to get first-hand information for calculation.

The plant of Hongyue North Copper Company, located in Huludao, Liaoning, is estimated to go into operation on Dec.7th, with first batch of refined copper products released next week.

LME 3-month copper continued falling after closing of the SHFE market on September 13, down 1.22% as of 4:31 pm.

The table below shows copper inventories on the COMEX on September 6.