China: SHFE base metal prices slump on higher inventories w-o-w

In the latest update from the Shanghai Futures Exchange (SHFE), overall inventory increased, but aluminium stocks went down by 1.32%. Prices for most metals dropped, except for aluminium, which went up by 0.2%.

In January 2024, China saw a rise in new bank loans, hitting a record high of CNY 4.92 trillion ($683.7 billion), as the central bank aimed to boost the slowing economy facing challenges from a property crisis and a declining stock market. Policymakers are expected to take more actions to support the economy in the coming months.

Commodity-wise stocks and prices

Copper

Copper stocks in SHFE warehouses surged by 25.8% to 86,520 t from 68,777 t last week, while futures fell by 1.3% to RMB 68,306/t ($9,590/t). Notably, copper has seen a continuous inflow for seven consecutive weeks.

Aluminium

In SHFE warehouses, aluminium inventories decreased by 1.32% to 104,763 t. Futures prices inched up by 0.2% to RMB 18,861/t ($2,648/t), w-o-w. Interestingly, after four weeks of inflow, aluminium stocks slipped this week.

Nickel

Nickel stocks were up and stood at 15,965 t, reflecting a 2.2% increase in contrast with a 2.5% drop in future prices to RMB 125,270/t ($17,588/t) w-o-w.

Zinc

Zinc inventories jumped to 33,593 t, up by 20.5%, in contrast with future prices, which fell by 3% to RMB 20,585/t ($2,890/t), w-o-w.

Lead

Lead inventories recorded a 1.3% increase, reaching 37,723 t. Conversely, futures prices declined by 0.2% to RMB 16,204/t ($2,275/t) w-o-w.

Additionally, the SHFE will be closed until 17 February, 2024, due to the Lunar New Year.