Shanghai-bonded copper inventory rise slows on resumed trading activity; nickel registers stock drop

Trading interest for bonded copper returned in March - especially in the latter half - capping the rise in copper inventories in Shanghai-bonded warehouses in the month to March 31, while nickel registered a stock decline on intermittent arbitrage opportunities.

Fastmarkets assessed Shanghai-bonded copper stocks at 334,000-344,000 tonnes as at March 23, up just 0.9% from 331,000-341,000 tonnes on February 24.
This followed a surge in copper entering bonded warehouses in February, when stocks jumped by 14.3% month on month. Market participants attributed the smaller monthly rise in March to more trading activity in the bonded area.
“Buyers are becoming more interested in bonded cargoes now, especially in the recent two weeks, given shipment uncertainties from the virus-led lockdown or closures in major overseas supplying countries,” a Shanghai-based trader said.
While China is starting to return to normal from its earlier shutdowns and strict travel restrictions, other countries have imposed lockdowns, causing uncertainty over overseas copper supply. This has made bonded trading comparably more attractive for Chinese traders.

A second Shanghai-based trader echoed the view that there has been an increase in bonded...

Published

Anna Xu

Violet Li

Hui Li

Sally Zhang

April 01, 2020

12:11 GMT

Shanghai