Copper inventories in China jumped sharply this week, breaking a three-week run of large withdrawals that had sparked worries about shortages caused by the pull of global copper supplies towards the United States.
Warehouses monitored by the Shanghai Futures Exchange reported a 34% jump in copper inventories to 108,142 metric tons (CU-STX-SGH) on Friday, the first net weekly increase since mid-March.
Inventories remain well above the record lows hit in late 2023 when stocks twice dipped below 30,000 tons.
The rise in inventories is due to tepid copper demand in China and steady output from a giant and growing smelter sector undaunted by deeply negative margins, according to an analyst and trader who spoke on condition of anonymity.
“The Shanghai daily on warrant stocks have been building every day this week. Chinese buyers are clearly backing off from these higher prices,” said Alastair Munro, senior base metals strategist at…
