The biggest inflow of red metal stocks was at Zhongchu Wusong’s warehouses in Shanghai, where inventories rose by 4,505 tonnes to 43,835 tonnes, according to data released by the exchange.
A lack of physical demand and approaching delivery date were the major drivers behind the increase, according to market sources.
“It’s summer and demand is not good; downstream plants are not keen to buy,” a Shanghai-based copper analyst said.
He added that some participants were also actively looking to have cargoes delivered into SHFE warehouses ahead of the delivery date.
A lack of appetite for imported copper amid a closed arbitrage window between London and Shanghai also resulted in a slight rise in red metal stocks in the Shanghai bonded zone during July
Fastmarkets assessed Shanghai bonded copper stocks
at 205,000-220,000 tonnes on July 27, up by 0.2% from 207,000-217,000 tonnes on June 29.
SHFE zinc stocks recorded the biggest decline in percentage terms this week, dropping by 3,848 tonnes (4.4%) to 84,499 tonnes, supported by better-than-expected spot demand.
SHFE stocks changes
- SHFE aluminium stocks grew by 7,087 tonnes (3.2%) to 228,906 tonnes.
- SHFE lead stocks fell by 716 tonnes (2.2%) to 32,222 tonnes.
- SHFE nickel stocks increased by 546 tonnes (1.6%) to 34,761 tonnes.
- SHFE tin stocks rose by 191 tonnes (5.8%) to 3,474 tonnes.