SHFE STOCKS - Copper inventories surge 13 pct, first rise since mid-August

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Vivian Teovivian.teo@fastmarkets.comJoint News Editor - Asia

Singapore 14/10/2016 - Deliverable copper stocks in Shanghai Futures Exchange-approved warehouses have risen 14,381 tonnes or 13.4% over the past fortnight to 121,439 tonnes as of Friday, October 14. 

There was no comparable stock data last Friday because of China’s national day holidays last week.

This week, Zhongchu Wusong in Shanghai saw the most stock arrivals - 6,907 tonnes of the metal entered its sheds.

This is the first increase in copper inventories in the SHFE warehouse network after seven straight weeks of decline between the week of August 15 and that of September 26. 

This week's stock increase was widely expected by the market - demand for metals is usually thin around the Golden Week holiday, a Shandong-based metals analyst said.

As well, SHFE copper stock levels are low while refined metal production at domestic smelters is high, a Shanghai-based copper analyst pointed out.

“If smelters are not able to export more, a lot of metal will end up being delivered to SHFE. So stocks could continue to rise,” he said.

For aluminium, SHFE stocks climbed 880 tonnes or 1.1% to 84,655 tonnes as of October 14 from two weeks ago.

Inventories had declined for three consecutive weeks previously due to transport disruptions after Beijing introduced new truck shipment rules in mid-September.

For zinc, SHFE stocks increased 7,297 tonnes or 4.6% over the past two weeks to 165,614 tonnes as of October 14. Inventories had declined for ten straight weeks previously. 

In other metals, lead stocks rose 6,386 tonnes to 32,058 tonnes and nickel inventories increased 419 tonnes to 111,374 tonnes. Tin stocks dipped 313 tonnes to 2,419 tonnes as of October 14.


(Editing by Mark Shaw)



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