SHFE STOCKS REPORT 06/11: Minimal movement in inventories; lead up 6.5%

Deliverable stocks of base metals in Shanghai Futures Exchange-registered warehouses were little moved in the week to Friday November 6, with the biggest percentage change seen in lead at 6.5%.

Lead stocks in SHFE-registered warehouses increased by 1,630 tonnes to 26,561 tonnes on Friday from 24,931 tonnes in the week prior.

The largest inflow was noted at Guochu Tianwei warehouse in Shanghai, where stocks rose 606 tonnes or 84% week on week to 1,331 tonnes, from 725 tonnes a week earlier.

This marks a second consecutive week of growth in lead stocks. Lead inventory rose by 1.9% week on week at the end of October.

“The season for peak demand has passed so inventory will start building up in warehouses,” a Shanghai-based analyst said.

The International Lead & Zinc Study Group (ILZSG) projects the global refined lead market will record a 276,000-tonne surplus in 2020, and a 192,000-tonne oversupply in 2021.

Other SHFE stocks changes 

  • Copper slumped 6% or 8,336 tonnes to 131,321 tonnes. 
  • Aluminium dipped 0.7% or 1,630 tonnes to 231,716 tonnes. 
  • Zinc inched up 0.8% or 486 tonnes to 60,874 tonnes. 
  • Nickel decreased by 6.3% or 1,867 tonnes to 27,661 tonnes. 
  • Tin rose by 1.2% or 50 tonnes to 4,238 tonnes.
What to read next
US export controls on recycled copper would have unintended consequences that could weaken the country’s domestic recycling and manufacturing ecosystems, the president of the Recycled Materials Association (ReMA) said.
American Chambers of Commerce (Amcham) across Latin America are calling for urgent negotiations to prevent the escalation of trade tensions between their countries and the US, following the announcement of sweeping 50% tariffs by President Donald Trump.
After a consultation period from June 20 to July 18, Fastmarkets made the decision to discontinue these assessments because the outright prices no longer reflect market conditions, with the market shifting toward payables as the dominant pricing method. The affected prices are:MB-NIO-0003 nickel mixed hydroxide precipitate outright price, cif China, Japan and South Korea, $ per tonneMB-NIO-0005 nickel […]
Global aluminium producer Alcoa has already diverted 100,000 tonnes of Canadian metal away from the US market in response to uncertainty about import tariffs with trade measures continuing to upend traditional trade flows and pushing the company to rethink its global supply strategy, its chief executive officer said.
The publication of Fastmarkets’ assessments for nickel 4x4 cathode, nickel briquette and nickel uncut cathode premiums in-whs Rotterdam was delayed on Tuesday July 16 because of a reporter error.
Fastmarkets has corrected its alumina index inferred prices, which were published incorrectly on Tuesday July 15.