Weekly Shanghai Futures Exchange warehouses report shows fundamentals for copper remain strong. Other metals also well supported.
Copper stocks in Shanghai Futures Exchange warehouses dropped 14.2% in the week ended June 19. This was the lowest level since January 2019. Copper inventories are down 71% from this year's peak set in the week of March 13. Chinese imports of unwrought copper are up 12.4% to the end of May compared to the same period last year. Imports of copper ores and concentrates are also 2.2% higher.
Also lending support to copper prices, and potentially important if the Coronavirus situation worsens in Chile, the world's biggest copper producer, Chile based Codelco threatened to take steps to force stricter health policies after the second employee at the company died from the virus.
In aluminium, inventories have been steadily declining to their lowest levels for 2020.
Iron ore inventories were up slightly week on week, but off the lowest inventory level since October 2016. Steel rebar inventories fell to their lowest levels in four months.
Zinc inventories have dropped 43% since the week ended March 13.
Nickel inventories bucked the trend closing slightly higher (+1.8%) on the week.
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