Shanghai bonded copper stocks extended decline on deterred arrivals

SHANGHAI, Apr 3 (SMM) – Stocks of copper across Shanghai bonded area declined for the second consecutive week as of April 3, falling 5,200 mt from a week ago to 333,800 mt, showed SMM data.

Amid the global COVID-19 outbreak, limited arrivals of seaborne copper at Chinese ports and reduced inflows to warehouses accounted for the decline in the bonded stocks.

In addition, expectations of tax cut stimulus from the Chinese government led to stockpiling activities and weighed on domestic inventories over the past two weeks. Improved import arbitrage bolstered trades of foreign copper under warehouse warrants and facilitated the inflow of cargoes to the domestic market.