Shanghai bonded copper stocks extended decline amid high import profits

SHANGHAI, Apr 30 (SMM) – Stocks of copper across Shanghai bonded area continued to trend downward this week, as high import profits prompted traders to move cargoes to the domestic market. 

SMM data showed that the stocks decreased 26,300 mt in the week ended April 30 to 279,500 mt, marking the sixth straight week of decline. The stocks fell 10,200 mt in the previous week.

Demand from downstream industrials, especially the power sector, held strong with support from China’s accelerated investment in infrastructure to boost the domestic economy.

The SHFE copper contracts remained in backwardation structure, which kept the import arbitrage window open with the domestic spot premiums above 100 yuan/mt.