Singapore 08/04/2016 - Copper stocks at Shanghai Futures Exchange warehouses dipped 7,800 tonnes or 2.1 percent week-on-week to 360,925 tonnes as of April 8, making this the third consecutive week of decline, according to data from the exchange.
This week, Zhongchu Wusong in Shanghai saw the most copper exits, with 3,902 tonnes leaving its sheds.
Total copper stocks have fallen 8.6 percent or 33,852 tonnes over the past three weeks although the current inventory level remains closr to a historical high.
The decline in stock levels this week was within market participants' expectations because the arbitrage window between Shanghai and London, which was the main reason for the surge in inventory between mid-January and mid-March, has been closed since late-January.
Improved demand during the peak consumption period of April-May is also expected to lead to further falls in SHFE stock levels.
Conversely, copper inventories in Shanghai's bonded zone have continued to climb, rising 17 percent month-on-month to a nine-month high of 530,000-550,000 tonnes at the end of March.
When SHFE stocks were climbing between mid-January and mid-March, inventories in bonded warehouses had fallen - Shanghai bonded stocks were moving into SHFE warehouses due to arb opportunities.
Market participants are now holding inventory in the bonded warehouses waiting for the arb window to open. But so far they are just waiting and there has been no opportunity at all," a Beijing-based metals analyst said.
In other metals, aluminium warehouse stocks fell 2,495 tonnes to 323,915 tonnes and zinc inventories decreased 1,971 tonnes to 268,793 tonnes this week.
Lead stocks rose 580 tonnes to 20,424 tonnes, while nickel inventories gained 3,967 tonnes to 77,407 tonnes. Tin stocks edged six tonnes higher to 778 tonnes.