As of Friday June 30, copper inventories in the domestic bonded zones decreased 5,100 mt from June 21 to 66,800 mt, according to the latest SMM survey. Inventories in the Guangdong bonded zone added 6,000 mt due to arriving shipments under bill of lading. Inventories in the Shanghai bonded zone dropped 11,100 mt to 55,300 mt.
Import losses continued to narrow this week and turned into profit on Friday amid high premiums in the domestic spot market. This grew shipments from bonded zone inventories under warrants. Next week, there would be concentrated arriving shipments of cancelled LME warrants.
Most of those cargoes will be delivered directly to buyers under long-term contracts, limiting arriving shipments in the bonded zones. Shipments from bonded zone inventories, on the other hand, will continue to grow due to improved SHFE/LME copper price ratio.
