Copper Inventory in China Bonded Zone Grew 25,500 mt This Week

SHANGHAI, Feb 10 (SMM) - Copper inventories in the domestic bonded zone increased 25,500 mt as of Friday February 10 from February 3, according to the latest SMM survey. Inventories in the Guangdong bonded zone increased 7,500 mt to 19,000 mt mainly due to copper cathode exports into the bonded warehouses. Inventories in the Shanghai bonded zone climbed 18,000 mt to 129,300 mt.

The persistent import losses after Chinese New Year holidays have significantly dampened the import demand, driving more shipments arrivals into bonded warehouses. Meanwhile, most of the cargoes exported by domestic mainstream smelters went to the INE. The bonded zone inventories thus increased after CNY holidays.

SMM believes that the growth in bonded zone inventories has slowed on the back of fewer arriving shipments. Given the premiums in the domestic spot market, customs clearance is set to pick up next week. The accumulation of bonded zone inventories should decelerate further.