Copper Inventories in China Bonded Zone Grew This Week, Seen Falling Next Week

SHANGHAI, Mar 17 (SMM) - As of March 17, copper inventories in the domestic bonded zones increased 5,100 mt from March 10 to 200,600 mt, according to the latest SMM survey. Inventories in the Guangdong bonded zone fell 1,200 mt to 15,000 mt due to a larger volume of shipments leaving the bonded zone. Those in the Shanghai bonded zone added 6,300 mt to 185,600 mt. Part of the increase in bonded zone inventory this week was contributed by the export by domestic smelters. The import losses narrowed sharply during the week and turned into profit at the end of the week.

Some smelters planned to reduce exports in March. At the same time, some cargoes under warrants flowed or will gradually flow into the domestic trading market amid improving SHFE/LME copper price ratio. Given limited shipments arrivals recently, bonded zone inventories look set to fall next week.