Copper Inventory in China Bonded Zone Grew 35,600 mt from Pre-CNY Level

SHANGHAI, Feb 2 (SMM) - Copper inventories in China’s domestic bonded zone increased 35,600 mt as of Friday February 3 from January 20, according to the latest SMM survey. Inventory in the Guangdong bonded zone added 6,200 mt to 11,500 mt, and inventory in the Shanghai bonded zone advanced 29,400 mt to 111,300 mt.

The lacklustre demand for seaborne cargoes amid significant import losses around CNY holidays has reduced shipments from bonded zone inventories. A large influx of arriving shipments over the past two weeks has resulted in substantial accumulation in bonded zone inventories. In addition, due to the wide opening of the export window before CNY holidays, mainstream smelters were queuing up to put the cargoes into the bonded area this week after the logistics recovered post-CNY. As such, the bonded zone inventories should grow further in the next two weeks. Exports by mainstream smelters would fall after February 5 in light of downstream demand and the SHFE/LME copper price ratio.