China: SHFE base metal inventories show mixed trend; lead stocks down sharply
The latest weekly inventory report from the Shanghai Futures Exchange (SHFE) showcases varied trends, with the largest outflow seen in lead by over 36%. Similarly, base m...
The latest weekly inventory report from the Shanghai Futures Exchange (SHFE) showcases varied trends, with the largest outflow seen in lead by over 36%. Similarly, base metal prices displayed mixed trends for the week.
China has maintained its position as the world's leading manufacturing hub for 14 consecutive years, according to the Ministry of Industry and Information Technology (MIIT). The total value-added industrial output rose by 4.6% compared to the previous year.
Solid labour force data dampened expectations of a Federal Reserve interest rate cut, leading to a rise in the U.S. index. Increased supply from Shanghai's warehouse receipts impacted spot market premiums, while weakening copper prices boosted downstream purchases. Despite this, pre-holiday stocking has not commenced, and it is anticipated that most companies will start next week, maintaining low price levels in the near term.
Commodity-wise stocks and prices
Copper
Copper stocks in SHFE warehouses notably increased for the fourth consecutive week and touched the four-month highest level at 47,753 t by 10.8% this week from 43,085 t last week. Meanwhile, copper futures inched down by 0.5% to RMB 67,870/t ($9,538/t).
Aluminium
In SHFE warehouses, aluminium inventories were largely stable this week, at 96,687 t, from 96,667 t last week. In contrast, futures decreased by 1% w-o-w to RMB 18,889/t ($2,654/t).
Nickel
Nickel stocks reached 14,111 t from last week's 14,193 t, inching down by 0.6% w-o-w. Nickel prices gained by 2.1% w-o-w to RMB 127,730/t ($17,951/t) compared to RMB 125,130/t ($17,585/t) last week. Furthermore, the announcement of the halt in projects related to intermediate products contributed to an increase in SHFE nickel prices.
Zinc
Zinc inventories in major SHFE warehouses witnessed a drop of 10%. The inventory stood at 22,602 t, compared to 25,124 t last week. Future prices went down marginally by 0.3% w-o-w to RMB 21,119/t ($2,968/t).
Lead
Lead inventories recorded the largest outflow for the week, declining 36.1% and stood at 37,122 t against last week's 58,111 t. Meanwhile, lead futures were up by 2.8% w-o-w to RMB 16,654 t ($2,340/t).
