Recently, LME copper stocks have continued to rebound, rising to 143750 tons in a row, a high of more than a month and a half and the longest rise in two years. It can be seen that the recent increase in LME copper inventory mainly comes from various warehouses in Asia, including Kaohsiung, Singapore, Busan and so on. The main reason for this phenomenon is that the import window of refined copper is closed, China's imports are reduced, and demand is hardly strong during the peak season, and some of the domestic copper is still outflowing. the Yangshan copper premium, which measures China's import demand, has fallen to its lowest level since 2017, and stocks in the bonded area have also rebounded.
Under the pressure of accumulated inventory, LME copper has been relatively weak recently, with futures prices showing a high decline, which is now at a two-month low. Recently, the national copper reserves are about to be put into operation, and the consumption off-season is also approaching, the current spot copper supply is more abundant, the pace of domestic copper inventory removal may not be sustainable for a long time, LME copper Asian warehouse inventory increase posture may continue, the follow-up still need to pay attention to LME inventory changes.
