LME Copper Inventory Exceeds 200,000t Due to Lower US Demand

Global copper inventory held by London Metal Exchange (LME) exceeded 200,000 tonnes on 7 January, which was the highest level since 12 March, 2007. LME copper inventory has increased since US subprime loan problem emerged in August 2007.LME copper inventory was 201,000 tonnes on 7 January, up by 2,400 tonnes from 4 January. The inventory volume more than doubled from below 100,000 tonnes in July 2007. LME copper inventory is especially increasing in USA where housing demand became stagnant due to the subprime loan problem. LME copper inventory in USA was 29,700 tonnes at the end of August and more than doubled to 60,875 tonnes on 7 January.On the other hand, copper inventory is decreasing held by New York Commodity Exchange (COMEX) and Shanghai Futures Exchange (SHFE). Total copper inventory of LME, COMEX and SHFE maintains flat since December 2007, which was 240,074 tonnes on 7 January. The 3 exchanges’ inventory total is less than 5-day global copper consumption when the 1-day consumption is estimated at 50,000 tonnes. The supply and demand balance still keeps tight.