LME Copper Inventory Continues Decreasing

Copper inventory held by London Metal Exchange has decreased for recent 3 weeks. The inventory decreased by 4,025 tonnes to 140,350 tonnes on 19 February from the previous day, which downed by 20% from the beginning of February. LME copper inventory is decreasing especially at Asian quays when Chinese copper smelters are in lower operations due to heavy snow.LME copper inventory was 201,000 tonnes on 7 January, 2008, the recent peak. The total inventory currently decreased by 30% compared with 7 January, down by 67% at Pusan, South Korea, by 20% at Kwangyang, South Korea and by 35% at Singapore.Inventories at Asian quays seem to be carried into Chinese market, while all of them are unlikely to be consumed for final users in the country. According to a research agency of a financial institution, Chinese intermediate copper manufacturers seem to procure copper from LME when domestic copper ingot supply is tightening due to heavy snow.