Aluminium in bonded warehouses is now at its highest in three years, while traders poured copper into warehouses rather than importing due to a negative arbitrage and weak demand.
Shanghai bonded copper stocks grow by 15% on closed arbitrage window
As of September 21, copper stocks in the Shanghai bonded zone rose by 15% from late August, and the growth is expected to continue during the last week of September, with more cargoes arriving amid the closed arbitrage window between London and Shanghai.
Fastmarkets assessed Shanghai bonded copper stocks at 265,000-280,000 tonnes on September 21, up by 35,000-36,000 tonnes or 15% from 230,000-244,000 tonnes on August 24.
Market participants said traders stayed away from the copper import market due to the wider loss for importing the red metal...