China: SHFE base metals stocks show mixed trends

The Shanghai Futures Exchange (SHFE) in China released its weekly inventory data which showed volatility in all non-ferrous commodities markets.

Notably, prices of most non-ferrous metals have risen this week, as market participants anticipate an increase in demand following the implementation of certain measures by Chinese authorities to stimulate specific sectors of the economy.

In an effort to support the country's struggling economy, Chinese authorities have introduced measures aimed at boosting the consumption of automobiles and electronic goods, both of which account for a significant portion of metals consumption.

Commodity-wise inventories

Aluminium

In SHFE warehouses, aluminium inventories increased by 5,283 t w-o-w. Total inventory was assessed at 113,045 t, up from 107,762 t last week. SHFE aluminium futures inched up by 0.2% w-o-w to RMB 18,214/t ($2,522/t) this week.

The domestic market continues to experience oversupply, while hot weather in southwestern China has raised concerns regarding the region's power supply prospects.

Copper

Copper stocks in SHFE warehouses decreased to 77,898 t this week from 82,690 t last week. Simultaneously, copper futures increased by 0.7% w-o-w to RMB 68,658/t ($9,552/t).

The off-season in China resulted in limited downstream consumption of copper.

Nickel

Nickel stocks fell this week to 2,490 t from last week's 2,784 t. Nickel prices moved down by 0.1% w-o-w to RMB 165,654/t ($23,046/t) compared to RMB 165,814/t ($23,069/t) last week.

Zinc

Zinc inventories in major SHFE warehouses edged upward. Currently, the inventory stands at 56,942 t compared to 51,975 t last week. Meanwhile, future prices inched up by 0.1% w-o-w to RMB 20,273/t ($2,821/t).

Despite expectations of domestic policy stimulus, the actual transaction activity in the market has been weak, and there has been a noticeable increase in inventory levels.

Lead

Lead inventories recorded a rise of 1.4%, reaching 39,555 t against last week's 35,145 t. Lead futures increased by 1.4% w-o-w at RMB 15,767/t ($2,194/t).