China: SHFE base metals stocks witness weekly gains barring aluminium
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In the week ending 10 May, deliverable stocks of base metals in Shanghai Futures Exchange (SHFE)-registered warehouses experienced inflows, barring aluminium, which saw a slight drop of 4.9% w-o-w. Meanwhile, lead stocks on SHFE jumped over 25% for the week, as per the exchange's weekly stocks report.
Erratic rainfall in China's southwest hampered efforts to green the aluminium industry, with Yunnan province facing electricity shortages. Smelters, enticed by promises of cheap hydropower, have seen only half of planned capacity shifts materialise due to insufficient supply.
This hampered China's climate goals and disrupted global aluminium prices. Despite efforts to boost renewable energy, challenges persist, leading some smelters to consider relocating. Yunnan's power issues prompted calls for alternative locations, potentially shifting capacity to northwestern China. Meanwhile, smelter operators hope for increased rainfall to alleviate the crisis.
Province-wise inventories
Copper
Copper stocks in SHFE warehouses witnessed a slight increase in inflows this week. The stocks were up by 0.7% to 290,376 t from the previous week's 288,340 t. Meanwhile, futures were down by 0.6% to RMB 80,692/t ($11,169/t).
Aluminium
Aluminium inventories in SHFE warehouses fell by 4.9% to 211,698 t, while futures prices stood steady at RMB 20,592/t ($2,850/t) for the week.
Nickel
Nickel inventories saw a marginal rise of 0.6%, reaching 23,669 t, while nickel futures prices decreased marginally by 0.1%, settling at RMB 143,492/t ($19,861/t) w-o-w.
Zinc
Zinc inventories rose to 131,178 t, marking a 2% increase, while future prices increased marginally by 0.6% to RMB 23,283/t ($3,222/t) from RMB 23,149/t ($3,204/t) for the week.
Lead
Lead inventories recorded a remarkable 25.7% increase, settling at 62,211 t this week. Similarly, futures prices witnessed a rise by 2.5% w-o-w to RMB 17,731/t ($2,454/t) from the previous week's RMB 17,305/t ($2,395/t).
