Shanghai bonded copper, aluminium stocks fall on open arb; zinc, nickel inventories up

Copper stocks at Shanghai bonded warehouses fell to a fresh all-time low at the end of June following the reopening of the import arbitrage window in China, while aluminium inventories also declined for the same reason.

Shanghai bonded copper stocks set fresh all-time low
The reopening of import arbitrage window between London and Shanghai led to a spike in import activity during June, causing copper stocks in the Shanghai bonded zone to fall to their lowest since Fastmarkets’ began assessments in October 2014.
Fastmarkets assessed Shanghai bonded copper stocks at 207,000-217,000 tonnes on Monday June 29, down by 5,000 tonnes (2.3%) from 212,000-222,000 tonnes a month earlier.
“No surprise to see the [copper bonded] stocks down further, because the arbitrage losses began to ease from mid-June, with the import window reopening intermittently, [and] this again stimulated import appetite,” a Shanghai-based trader said.

Importers stood to lose an average of $12.66 per tonne for each tonne of copper brought into China over the June 15-29 period, narrower than the $25.02 per tonne loss seen in the first half of the month,...


Anna Xu

Hui Li

Sally Zhang

July 02, 2020

05:04 GMT