Copper stocks monitored by the Shanghai Futures Exchange surged 10.5 percent this week, hitting a record high, data from the exchange showed on Friday. Copper stocks were at 305,106 tonnes, up more than 70 percent from late 2015. The stocks started rising mostly in early December 2015 due to record imports and steady domestic production. Stocks further rose after the Chinese New Year holiday in February as a result of weak demand during the break.
Demand for copper in China have stayed weak after traders and factories returned to work last week and this week from the Chinese New Year holidays, according to traders. This could encourage suppliers to store the metal in warehouses. Aluminium stocks rose 4.1 percent from previous week to 329,765 tonnes this week, the highest since August 2014, the data showed. Stocks of zinc, lead and nickel also increased this week. Zinc stood at 261,120 tonnes, the highest since April 2014 and up 6 percent from last week. Lead increased 9.1 percent from last week to 15,540 tonnes this week, the highest since July 2015.