Shanghai copper bonded stocks fall to all-time low
Shanghai bonded copper stocks dropped to the lowest level since Fastmarkets started tracking the market from 2014.
Fastmarkets assessment for Shanghai bonded copper stocks
was 165,500-179,500 tonnes on November 29, down by 15.6% from 197,500-211,500 tonnes on November 1.
The profitable import conditions in mid-November boosted import activity, causing the already low bonded stocks to drop even further, Fastmarkets understands.
“People rushed to buy bonded materials due to decent import profits, but the decline was relatively small due to the low stocks [in the bonded warehouses],” a Shanghai-based trader said.
The same trader also added that the surge in the premium for copper cathodes in China’s domestic spot market
also spurred market enthusiasm for bonded materials, which enabled them to lock in profits for their prompt deliveries sooner than for cif cargoes.