China: SHFE base metals prices remain positive w-o-w; Lead stocks drop over 14%
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In the week ending 19 April, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses experienced slight increases, except for lead and aluminum, which saw a notable decline of 14%, as per the exchange's weekly stocks report.
Commodity-wise stocks
Copper
Copper stocks in SHFE warehouses witnessed a slight increase in inflows for the week. The stocks were up marginally by 0.1% to 300,045 t from the previous week's 219,474 t. Meanwhile, futures were up by 1.2% to RMB 75,784/t ($10,467/t).
Copper prices rose, driven by supply concerns and rising demand. Chinese smelters cut output by up to 10% amid low copper ore supply, exacerbating overcapacity. Despite this, Chinese copper imports surged 16% in March, indicating potential manufacturing recovery, while refined copper production rose by 7.9%.
Aluminium
Aluminium inventories in SHFE warehouses fell by 1.4% to 228,537 t, while futures prices witnessed a slight uptick by 1.2% to RMB 20,478/t ($2,828/t) for the week.
Additionally, China's output increased by 7.4% y-o-y in March, driven by rising demand and profits. Imports surged 89.8% in March, indicating strong global demand and potentially tighter supply.
Nickel
Nickel inventories saw a marginal rise of 1.9%, reaching 23,200 t, while nickel futures prices increased marginally by 0.1%, settling at RMB 136,874/t ($18,905/t) w-o-w.
Zinc
Zinc inventories inched up to 131,747 t, marking a 3.2% increase, while future prices increased by 3.1% to RMB 22,667/t ($3,130/t) from RMB 21,986/t ($3,036/t) for the week.
Lead
Lead inventories recorded a 14.1% decrease, recording the highest drop among all base metals, settling at 51,746 t for the week. Meanwhile, futures prices witnessed a rise for the week by 2% to RMB 16,945/t ($2,340/t) from the previous week's RMB 16,617/t ($2,295/t).
