Copper inventories in the domestic bonded zones grew

Copper inventories in the domestic bonded zones grew 9,500 mt from May 9 to 90,700 mt as of Thursday May 16, according to the latest SMM survey. Copper inventories in the Shanghai bonded zone added 9,300 mt to 85,300 mt, and inventories in the Guangdong bonded zone grew 200 mt to 5,400 mt. The bonded area inventory continued to increase in the week ending May 17. The sellers could not accept the counter-offers of large discounts and delivered the arriving shipments to the bonded area. Meanwhile, the previously exported cargoes by smelters were delivered. In the future, as the SHFE/LME price ratio continues to weaken, the cargoes arriving may gradually enter the bonded warehouse. In addition, some smelters may continue to increase their export volumes. According to SMM, due to a large-quantity purchase of warehouse warrants in the market for delivery to COMEX, some cargoes will leave the bonded warehouse. But overall the bonded inventory will remain high.