Deliverable copper stocks at Shanghai Futures Exchange-approved warehouses increased by 12,942 tonnes (8.1%) to 172,455 tonnes in the week to Friday August 7, marking the largest gain in percentage terms across the base metals complex.
The biggest inflow of red metal stocks was at Zhongchu Wusong's warehouses in Shanghai, where inventories rose by 4,505 tonnes to 43,835 tonnes, according to data released by the exchange.
A lack of physical demand and approaching delivery date were the major drivers behind the increase, according to market sources.
"It's summer and demand is not good; downstream plants are not keen to buy," a Shanghai-based copper analyst said.
He added that some participants were also actively looking to have cargoes delivered into SHFE warehouses ahead of the delivery date.
A lack of appetite for imported copper amid a closed arbitrage window between London and Shanghai also resulted in
a slight rise in red metal stocks in the Shanghai bonded zone during July.
Fastmarkets assessed
Shanghai bonded copper stocks at 205,000-220,000 tonnes on July 27, up by 0.2% from 207,000-217,000 tonnes on June 29.
SHFE zinc stocks recorded the biggest decline in percentage terms this week, dropping by 3,848 tonnes (4.4%) to 84,499 tonnes, supported by better-than-expected spot demand.
SHFE stocks changes
SHFE aluminium stocks grew by 7,087 tonnes (3.2%) to 228,906 tonnes. SHFE lead stocks fell by 716 tonnes (2.2%) to 32,222 tonnes. SHFE nickel stocks increased by 546 tonnes (1.6%) to 34,761 tonnes. SHFE tin stocks rose by 191 tonnes (5.8%) to 3,474 tonnes.