Shanghai-bonded base metal stocks rise on sustained import losses; zinc inventory boosted by bullish short-term outlook

Copper stocks at Shanghai-bonded warehouses rose again in January after sustained losses in the import arbitrage between London and Shanghai, while a relatively bullish outlook on Chinese zinc demand after the Lunar New Year holiday led to an uptick in shipments of zinc cargoes into the bonded zone.

Copper stocks up 4% from Dec due to import arb losses Shanghai-bonded copper stocks rose for the fourth consecutive month after sustained import losses deterred traders’ buying appetite for bonded cargoes.  Shanghai-bonded copper stocks in January rose by 4% month on month to 441,000-446,000 tonnes, but was down by 3% from the same month in 2018. January’s copper volumes are 16% higher than the 2018 low of 381,000-386,000 tonnes on October 22. Market participants attributed the month-on-month rise to the sustained import loss for traders bringing copper metal into China from the bonded zone and lackluster demand in the domestic Chinese market ahead of the Lunar New Year holidays (February 4-10). Traders stand to loss $140.48 per tonne for importing copper metal into China as of Thursday January 31. The loss on December 28 was $67.35 per tonne, according to Fastmarkets’ calculations. “We can scarcely find a chance to make profit from...

Published

Ellie Wang

Anna Xu

Violet Li

Hui Li

February 01, 2019

10:48 GMT

Shanghai