Copper inventories on the Shanghai Futures Exchange (SHFE) decreased again on Friday although the rate of withdrawals slowed, easing concerns that an accelerating drawdown in stocks could cause prices to spike.
Copper inventories on the SHFE decreased by 10% since the end of April, reaching 80,705 metric tons on Friday, with the rate of decline slowing from a 23.5% drop last week and a record 32% reduction the week before.
The combination of a slower pace of withdrawals combined with a small easing of copper price backwardation eased concerns that prices would suddenly spike, traders said. Last month, some had raised concerns about a short squeeze.
“Most downstream fabricators have already taken delivery of copper in April, which they booked when copper prices plunged following Trump’s announcement of reciprocal tariffs, that’s why declining rate slows in May,” one said.
Backwardation…
