Copper inventories in the domestic bonded zones stabilised as decline in Shanghai was offset by growth in Guangdong

As of Friday December 8, copper inventories in the domestic bonded zones held flat from a week earlier, according to the latest SMM survey. Copper inventories in the Shanghai bonded zone fell 400 mt to 9,000 mt, while inventories in the Guangdong bonded zone added 400 mt to 2,800 mt. Stocks in the Guangdong bonded zone accumulated slightly due to increased arriving shipments. The cargoes were quickly booked by the market given the open import window, which will be taken before the delivery of the SHFE front-month contract. Inventories in the Shanghai Bonded Warehouse is expected to fall. The decline in bonded zone inventories should slow down significantly. Premiums in China’s domestic spot markets plunged and are likely to turn into discounts in the week of December 11. This will reduce import profit sharply against spot copper in Shanghai, thereby weakening shipments under warrants from bonded zone inventories.