SHFE STOCKS REPORT 04/05: Copper inventories reverse 3-week decline to rise 6%

• This week, 830 Huangpu in Guangdong saw the most copper stock arrivals with 7,853 tonnes entering its sheds.
• The earlier decline in copper stocks reflected good domestic demand, and some hold back in inventory by suppliers ahead of the 1% cut in China’s value-added tax (VAT) to 16% on May 1, a Shenzhen-based copper analyst said.
• The increase in stocks this week is likely a result of sellers releasing inventories into the market post-VAT decrease, he said.
• Copper stocks in Shanghai-bonded warehouses were assessed by Metal Bulletin at 520,600-521,000 tonnes on April 23, up from 505,000-510,000 tonnes two
• The most-traded June copper contract on the SHFE closed at 51,290 yuan ($8,068) per tonne on Friday, down from April 27’s closing price of 51,560 yuan per tonne, amid renewed dollar strength.

Others fall, except tin

• Aluminium inventories fell 5,366 tonnes to 986,205 tonnes.
• Lead stocks dipped 3,955 tonnes to 19,304 tonnes.
• Zinc stocks slipped by 1,235 tonnes to 106,412 tonnes.
• Nickel inventories decreased by 817 tonnes to 39,334 tonnes.
• Tin stocks gained 928 tonnes to 6,413 tonnes.