Shanghai-bonded Cu stocks hit 20-month high in March; Zn inventories record another steady gain

Copper stocks in Shanghai-bonded warehouses rose for a fifth consecutive month in March, hitting a 20-month high by the end of the month, after Chinese smelters continued to deliver cargoes into the bonded zone to take advantage of an export arbitrage that has been in place since mid-February.

But market participants told Fastmarkets that copper stocks in the bonded zone are very likely to decline in the near term amid increased interest for bonded material after China announced it would be lowering its value-added tax (VAT) rate from Monday April 1, 2019.
Meanwhile, zinc stocks in the Shanghai-bonded zone ticked upward by around 5% last month, nickel stocks dipped slightly and aluminium inventories edged upward by 3.2%.
Bonded Cu stocks reach highest since June 2017
Fastmarkets assessed Shanghai-bonded copper stocks at 563,000-567,000 tonnes on March 25, marking an increase of 97,000-103,000 tonnes or 21.5% from the 460,000-470,000 tonnes recorded on February 25. March’s levels are also up by 57,000-63,000 tonnes or 11.9% from the 500,000-510,000 tonnes recorded a year earlier.

Shanghai-bonded copper stocks were last assessed at a similar level in June 2017, when...


Ellie Wang

Anna Xu

Violet Li

Hui Li

April 02, 2019

10:53 GMT