Copper Inventory in Shanghai Bonded Zone down 12,200 mt

SHANGHAI, Aug 20 (SMM) – Copper inventories in the Shanghai bonded zone decreased 12,200 mt from August 13 to 368,500 mt as of August 20, the sixth straight week of decline.

An improved SHFE/LME copper price ratio, driven by domestic electricity curtailment, shortage of copper scrap and limited inflow of imported cargoes, has incentivised customs clearances. Yangshan copper premiums surged amid tight supply, with the average premium under warrants surging over $50/mt in three trading days.

Continued imports under warrants are likely to drive further declines in bonded zone inventories.