Stockpiles of copper in China have increased by around 300,000-400,000 metric tonnes since the start of 2009, according to a report released by Macquarie Bank on Monday.
The report estimates a 50,000-tonne addition at the State Reserve Bureau, 40,000 tonnes at Shanghai Futures Exchange warehouses, 60,000 tonnes at bonded warehouses and 150,000-250,000 tonnes of additional stock being held by traders and semi-fabricators.
It describes the addition as “moderate” but says it still portends lower imports in July and August and a stabilization in LME inventories over this period.
The report also said other indicators also showed China’s domestic copper market was now well supplied, noting that copper premiums into China have fallen to $70 per tonne CIF China over the prevailing LME price from $280 per tonne in early April.
At 0150 GMT, London Metal Exchange three-month copper was at $4,949 per tonne.