Shanghai bonded copper stocks extended decline as arbitrage window remains open

SHANGHAI, Apr 24 (SMM) – Stocks of copper across Shanghai bonded area continued to fall sharply this week, as the import arbitrage window remained open while domestic demand for copper was healthy.

SMM data showed that the stocks decreased 10,200 mt in the week ended April 24 to 305,800 mt, marking the fifth straight week of decline. The stocks fell 11,300 mt in the previous week.

Consumption of copper cathode in China was stable, fuelled in part by continued scrap shortages. That, coupled with the opened arbitrage window, boosted demand for imported copper and tightened supply under bills of lading.