A 10% month-on-month drop in Shanghai-bonded copper stocks in July has been more than offset by climbing exchange stocks, which have dampened any supportive effect on copper prices in China.
Shanghai-bonded copper stocks fell to an eight-month low in July, reflecting much less refined copper imports so far this year. Nonetheless, increasing copper stocks in London Metal Exchange and Shanghai Futures Exchange warehouses are still fueling worries of dwindling global copper demand. Fastmarkets assessed Shanghai-bonded copper stocks at 391,000-395,000 tonnes on July 29, down by 45,000 tonnes or 10.3% from 435,000-441,000 tonnes on July 1. The assessment has fallen for four consecutive months since May 6 and is at the lowest level since the middle of November 2018 when stocks were at 383,000-390,000 tonnes. Copper bonded stocks were at 475,000-491,000 tonnes a year ago on July 30, 2018, meaning levels in July 2019 have fallen by 90,000 tonnes or 18.6% year on year. Market participants attributed the sharp inventory decrease in July to much lower refined copper imports to China in 2019, and in turn much less cargoes entering the Shanghai...