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...