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...