LME Copper Stock Hits 6-Month Low

Copper ingot inventory decreased to less than 300,000 tonnes at warehouses registered to London Metal Exchange for the first time in half year. The stock decreased by 45% from the peak in late-February. LME copper ingot price recovered US$ 5,000 per tonne for the first time in 8 months. The stock is very low in Asian warehouses while stock of Shanghai Futures Exchange tripled in 3 months.

LME copper stock decreased to 299,975 tonnes on Friday while the stock was 548,400 tonnes on February 25. The stock represented 6 days of world consumption compared with 11 days in late February. Chinese demand contributed to the reduction of copper stock. The stock decreased by 96% at Busan, South Korea and by 78% at Rotterdam, Netherlands from late February.

However, Chinese copper demand is slowing down recently. Shanghai Futures Exchange’s copper stock reached 45,480 tonnes on Friday, which was the highest level since May 2008 and tripled in a month.

The copper stock also keeps high at warehouses in USA. The stock registered to New York Mercantile Exchange reached 57,239 tonnes on Friday, which was the highest level since September 2004 and 10 times of the level at Lehman Shock.