At the same time, zinc, nickel and aluminium stocks in Shanghai-bonded warehouses rose amid sustained arbitrage losses, which discouraged participants from delivering metal out of the bonded zone.
Shanghai-bonded copper stocks drop to February 2016 low
- Copper stocks hit lowest level since February 2016
- Zinc inventories rise on persistently low import interest
- Nickel stocks increase due to closed arbitrage window
- Aluminium inventories edge up but significant import losses remain
Fastmarkets assessed Shanghai-bonded copper stocks
at 360,000-365,000 tonnes at the end of August, marking a month-on-month decrease of 7.8% from 391,000-395,000 tonnes in July. The latest assessment also marked a 22.4% decline from a year earlier and is the lowest level since mid-February 2016.
The decrease is attributed to an improved import arbitrage between London and Shanghai during August, which had boosted participants’ buying interest for copper bonded warrants, according to market sources.