Monday Morning Review of China copper Inventories., I am continuing to track inventories in China and we see a cointinued renewal in demand. This recap of last week is interesting:
" On the fundamentals, as of Friday March 10, SMM copper inventories in major Chinese markets decreased 37,000 mt to 271,100 mt from last Monday, down 38,000 mt from the two Fridays ago. Delivery taking volume in east China increased significantly last week, mainly due to the drop in copper prices and the increase in orders. Guangdong also saw a significant increase in consumption due to the production resumption by large downstream producers. With the arrival of the peak season and the drop in copper prices, consumption is expected to continue to recover. Due to the influence of overseas macroeconomics, the market risk aversion has increased, weighing on copper prices."
This bodes well for copper prices since COMEX and LME warehouses are still at a 5 year low. Keep in mind China is 50% of copper demand.