Analysis of LME copper inventories in the previous period in the first quarter of 2016

At the beginning of the year, copper stocks were basically on an upward trend, monitoring data showed that LME copper stocks were 242375 tons at the end of January, an increase of 5,025 tons from the end of the previous month, and copper stocks on the Shanghai Futures Exchange also increased to 211965 tons from 194312 tons at the end of last year
.
Since February, copper inventories in the previous period and London Metal Exchange (LME) copper stocks have shown a completely opposite trend, LME copper stocks have continued to decline, and Shanghai Futures Exchange copper stocks have been rising
.

LME copper inventories have shrunk since last autumn, with an "eleven consecutive declines" in March this year, reaching their lowest level in nearly 14 months, a decline of about 50%.

In stark contrast, China's copper inventories hit a record high in the first quarter of this year
.
After a sharp decline in the first half of last year, copper inventories in the previous period have steadily increased and doubled in March this year, reaching an all-time high
.
This is the first time in more than a decade that the previous copper stock exceeded the LME copper stock.

However, it is worth noting that the total amount of global copper stocks has not changed much, that is, the copper market pattern has changed, and perhaps some of the spot copper in LME warehouses has flowed to the previous period
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Therefore, some analysts believe that the reduction in London copper stocks does not mean that demand has improved, and the actual market demand remains to be seen
.