As of Friday September 1, copper inventories in China’s domestic bonded zones decreased 8,700 mt from August 25 to 49,400 mt, according to the latest SMM survey.
Inventories in the Shanghai bonded zone dropped 8,300 mt to 42,400 mt. Inventories in the Guangdong bonded zone fell 400 mt to 7,000 mt. The concentrated shipments by traders who had previously locked in the SHFE/LME copper price ratio resulted in a sharper decline in bonded zone inventories this week. Meanwhile, the import profit versus spot copper in Shanghai drove continued growth in shipments from bonded zone inventories. Most of the shipments arriving in late August and early September have been booked solid or imported for sale in the domestic spot market, limiting shipments to the bonded warehouses.
Copper inventories in bonded zones should fall further next week albeit at a slower pace price. Most of the warrants in the bonded zones will not be offered for sale until mid-September.
