Copper Inventories in China Bonded Zones Plunged This Week

SHANGHAI, Jul 14 (SMM) – As of July 14, copper inventories in the domestic bonded zones decreased 1,900 mt from July 7 to 59,300 mt, according to the latest SMM survey.

Inventory in the Shanghai bonded zone dipped 1,900 mt to 50,300 mt, and inventory in the Guangdong bonded zone held flat. The recent deteriorating SHFE/LME copper price ratio has reduced shipments from bonded zone inventories, slowing inventory declines. As of this Friday, import losses against the SHFE front-month copper contract exceeded 800 yuan/mt.

Concentrated arriving shipments from deliveries to LME warehouses contributed little to bonded zone inventories. But the reopening of the export window, combined with the off-season in China, will drive stock accumulation in the bonded zones.