Take physic, pomp

Chart of the day is…

…this one that maps the Chinese copper de-stocking / re-stocking cycle, from this report out of Deutsche Bank this morning.

There’s  more on that link (available for 90 days) but here’s the cover blurb to give the idea:


Chinese refined copper imports rebounded from the new year holidays impact reached 375.8kt (up 12.0% MoM) in February.  According to our China copper inventory model, last month restocking surged close to record highs Figure 1. Although some lending easing has taken place, imports related to financing deals could continue in the near term in our view.  Bonded warehouse stocks have reached over 530Kt and could approach 600Kt soon.  Meanwhile, copper scrap imports almost doubled to 402.7kt in February from the previous month.  Our China metals & mining team noted that mostly went to feed expanded smelting capacities utilizing scrap feed materials. This should lead us to see an increase in copper production in the coming months.

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