Mercuria says China's copper inventories could fall to zero by June at current rate of decline

Mercuria executives predict that copper stocks in China could drop to zero in just a few months. The main reason for this is high demand for the red metal in the US, where buyers are eager to purchase it before import tariffs are introduced.

Based on data from the Shanghai Futures Exchange, copper reserves in China fell by nearly 55,000 tons last week, reaching 116,800 tons. This was the largest weekly decline on record.

Now the Asian country has limited reserves to meet domestic demand. At the current rate of decline, Mercuria forecasts that China's copper supplies may run out by mid-June.

The company emphasizes that the United States is competing with China for the industrial metal’s supplies for the first time. This could lead to a sharp rise in prices. In response to US tariffs, China is likely to take retaliatory steps that could negatively affect the availability of copper scrap.

Mercuria analysts predict that markets will react to the depletion of stocks in China before they reach zero. Experts attribute this to the expected rise in prices and the resulting increase in imports of copper and scrap.