Shanghai Copper Stocks Seen up 5,000-6,000 T on Imports

SINGAPORE, Oct. 16 -- Copper stocks in Shanghai likely rose by 5,000-6,000 tonnes this week, the first weekly gain in four weeks, reflecting an unexpected increase in Chinese imports last month and holiday-thinned demand.

    The forecast increase in copper inventories ranged from a low of 2,000 tonnes to a high of 10,000 tonnes from four traders surveyed by Reuters. A rise of up to 10,000 tonnes would boost Shanghai copper stocks <0#SGH-STOCKS> to their highest in nearly a month.

    Stocks of the metal dropped 7 percent to 89,822 tonnes last week, the third weekly fall since jumping to more than five-year highs in mid-September.

    China's copper imports rose 23 percent from the previous month to nearly 400,000 tonnes in September, according to customs data on Wednesday, surprising analysts who had expected imports by the world's top copper consumer to slow after record purchases in the first half.

    Traders said the rise in September imports would have probably lifted inventories in Shanghai, but many were still puzzled by the increase.

    "I think this has to do with some long-term contracts that were executed in September because demand in China is so-so," said a Shanghai-based trader.

    "And the information we got is copper stocks will be up about 5,000 tonnes this week."

    The National Day celebrations in China which ran Oct. 1-8 may have also slowed demand, traders said.

    The Shanghai Futures Exchange will release the weekly data after the market closes.

    (Source: Reuters)