An open import arbitrage window during May has led to significant declines in copper and zinc stocks in the Shanghai bonded zone, while aluminium stocks rose following a rush by participants to deliver more metal in bonded warehouses to satisfy growing appetite to import the light metal into China.
Shanghai bonded copper stocks fall to all-time lowFastmarkets' copper import arbitrage, which pits the London Metal Exchange three-month contract against the Shanghai Future Exchange's most actively traded contract - taking into account premiums, currency and other costs - was positive throughout the first half of May. The import arbitrage averaged positive $34.79 per tonne during May 6-18 before turning negative once...