The latest weekly inventory update from the Shanghai Futures Exchange (SHFE) indicated a surge in overall inventory, notably with a substantial 36.1% increase in copper stocks. Alongside this, prices for all base metals witnessed an uptick, except for lead, which experienced a 1.5% decrease.
Germany has allocated approximately Euro1 billion ($1.1 billion) for raw material investments, aiming to diminish its reliance on countries like China for crucial minerals. The funds, facilitated by Germany’s state-owned KfW development bank, would support projects related to extraction, processing, and recycling, thereby enhancing the security of critical raw material supplies. It targets securing the supply chain of raw materials essential for manufacturing microchips, wind turbines, and electric vehicle batteries.
Commodity-wise stocks and prices
Copper
Copper stocks in SHFE warehouses surged by 36.1% to 68,777 t against 50,532 t last week, with a hike in futures by 1.7% to RMB 69,174/t ($9,586/t). It is noteworthy that copper has witnessed a consistent inflow of material for the sixth consecutive week.
Aluminium
In SHFE warehouses, aluminium inventories increased by 4.56% to 106,165 t. Similarly, futures prices inched up by 0.3% to RMB 18,819/t ($2,608/t), w-o-w.
Nickel
Nickel stocks climbed to 15,622 t, reflecting a 3.3% increase in alignment with a 0.7% rise in future prices to RMB 128,498/t ($17,807/t) w-o-w.
Zinc
Zinc inventories witnessed a significant uptick of 23.1% to 27,882 t, balanced with future prices up by 1.8% to RMB 21,224/t ($2,941/t), w-o-w.
Lead
Lead inventories, after witnessing outflows in the previous week, recorded a 1.5% increase, reaching 37,252 tonnes. Conversely, futures prices declined by 1.5% to RMB 16,236/t ($2,249/t) w-o-w.
