Shanghai-bonded Cu stocks at three-year low; Zn, Ni stocks rise amid unfavorable arb conditions

Shanghai-bonded copper stocks fell to their lowest level since February 2016 at the end of August after a profitable import arbitrage between London and Shanghai boosted buying interest for bonded warrants last month.

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.
  • 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

Shanghai-bonded copper stocks drop to February 2016 low
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.

Participants stood...

Published

Ellie Wang

Anna Xu

Violet Li

Hui Li

September 02, 2019

10:00 GMT

Shanghai