Latest price spike, coupled with tepid consumer demand, has led manufacturers in China to pull back on buying, leading to biggest glut of copper in 4 years in Chinese warehouses.
Stocks in Shanghai Futures Exchange warehouses have grown to their highest level
since 2020 at about 330,000 tonnes this month, highest level since 2015.
“Traders have warned that global copper inventories are still at dangerously low levels with only several days’ worth of consumption in back up. This, they argue, creates a risk of volatile price surges.
“The weak market in China has led copper for delivery to Shanghai to trade at a discount to the global benchmark price — a rare occurrence.
‘However, it appears that Chinese copper fabricators have very recently started buying the metal again, with inventories recording slight decreases in the past two weeks.”
Read the whole article on the FT here: https://www.ft.com/content/a5fc14c0-3100-48da-8fb4-3e3a1d2ea098
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