China: SHFE base metal stocks witness varied trends w-o-w, lead drops over 20%

The latest weekly stock report from the Shanghai Futures Exchange (SHFE) indicated that the inventory of base metals in SHFE-registered warehouses saw a varied trend w-o-w. Among these metals, lead experienced the most significant decline in percentage terms.

In China's Yunnan province, aluminium smelters resumed operations, expecting a 500,000 tonne (t) output recovery following improved power supply policies. Globally, primary aluminium output rose by 3.9% y-o-y in February.

The People's Bank of China maintained lending rates to boost economic activity amidst challenges from the property sector.

Copper

Copper stocks in SHFE warehouses witnessed a slight decline in inflows among all base metals. The stocks were down marginally 0.5% to 285,090 t from the previous week's 286,395 t. Similarly, futures were up by 3.5% to RMB 72,756/t ($10,064,/t).

Aluminium

Aluminium inventories in SHFE warehouses fell by 3.2% to 199,757 t, while futures prices witnessed a slight uptick to RMB 19,285/t ($2,668/t) for the week.

Nickel

Nickel inventories saw a 2.7% rise, reaching 20,713 t, while nickel futures prices decreased by 0.2%, settling at RMB 138,850/t ($19,207/t) w-o-w.

Zinc

Zinc inventories upped to 121,873 t, marking a 1.9% increase, while future prices rose by 9.4% to RMB 23,294/t ($3,222/t) from RMB 20,298/t ($2,808/t) for the week. Zinc prices inched up, backed by Glencore pausing operations at three mines in Peru for up to 30 days.

Lead

Lead inventories recorded a 20% decrease, reaching 53,631 t. Concurrently, futures prices witnessed a rise for the week by 0.1% to RMB 16,249/t ($2,248/t) from the previous week's RMR 16,236/t ($2,246/t).