China: SHFE base metals inventories record outflows w-o-w barring lead
...
In the week ending 14 June 2024, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses witnessed downtrend barring lead. Notably, lead stocks on SHFE recorded an inflow of 2.5% for the week, as per the exchange's weekly stocks report.
China's economic recovery sputters as new bank loans in May rise less than expected. The central bank may avoid rate cuts due to a weakening yuan. Household loans see some improvement, but corporate loans dip. Money supply growth hits record lows, reflecting weak private business confidence. Despite slow loan growth, broader credit inches up due to increased government bond issuance.
Province-wise inventories
Copper
Copper stocks in SHFE warehouses witnessed slight outflows this week. Stocks were down by 1.8% to 330,753 tonnes (t) from the previous week's 336,964 t. Meanwhile, futures fell by 1.2% to RMB 80,662/t ($11,116/t).
Aluminium
Aluminium inventories in SHFE warehouses remained largely stable with a marginal drop of 1% to 224,303 t, while futures prices saw a slight decline of 1.4% to RMB 21,018/t ($2,896/t) this week.
Nickel
Nickel inventories declined the highest by 3.6%, reaching 24,707t. Meanwhile, nickel futures prices decreased by 4.4%, settling at RMB 140,844/t ($19,411/t) w-o-w.
Zinc
Zinc inventories were down by 1.4% to 125,408 t, while future prices decreased by 2.2% to RMB 23,880/t ($3,291/t) from RMB 24,408/t ($3,363/t).
Lead
Lead inventories recorded inflows of 2.5% reaching 65,584t this week. Similarly, futures prices remained firm w-o-w at RMB 18,760/t ($2,585/t) from the previous week's RMB 18,790/t ($2,589/t).
