Copper Inventory in China Bonded Zone Grew 15,900 mt This Week

SHANGHAI, Feb 17 — Copper inventories in the domestic bonded zone increased 15,900 mt as of Friday February 17 from February 10, according to the latest SMM survey. Inventory in the Guangdong bonded zone added 3,500 mt to 22,500 mt, and inventory in the Shanghai bonded zone advanced 12,400 mt to 141,700 mt.

The inventory growth in the two bonded areas is attributable to exports by domestic smelters (some smelters have delivered copper cathode to LME delivery warehouses around China). Meanwhile, import losses against the SHFE front-month copper contract stood at 500-800 yuan/mt, dampening the demand for seaborne copper. This also resulted in poor shipments from bonded zone inventories.

SMM believes that the delivery of exported cargoes into bonded warehouses by domestic smelters has come to an end this week. Arriving shipments under bill of lading will remain low amid persistent import losses. As such, the growth in bonded zone inventories should slow further next week.