LME Cu Inventory May Turn Upward, Al Stock Keeps Increasing

Electrolytic copper inventory represented the first increase in a month at warehouses designated by London Metal Exchange (LME) on 3 July. LME copper inventory has halved from the recent peak at around 550,000 tonnes in February thanks to the strong demand from China. LME copper price may be impacted if LME inventory turns upward. On the same day, LME primary aluminium inventory exceeded 4.4 million tonnes in the continuously increasing trend.

LME copper inventory increased by 4,050 tonnes to 268,275 tonnes on 3 July from the previous day, which represented the first increase since 6 May. The inventory increased by 1,900 tonnes in Rotterdam and by 1,850 tonnes in Singapore.

LME copper inventory hit the recent peak at 548,400 tonnes on 25 February. Surplus copper ingot was brought to LME warehouses under economy downturn. However, the inventory has more than halved toward the present thanks to Chinese active demand for infrastructures and national stockpiles.

Copper inventory held by Shanghai Futures Exchange had already expanded to 68,536 tonnes in late June from 15,051 tonnes at the end of April. Japanese trader source has indicated LME copper inventory would turn upward soon with slowdown of Chinese demand.

On the other hand, LME primary aluminium inventory has increased and revised the record day by day along economy deterioration. The inventory still maintains slight uptrend. Japanese traders expect the uptrend would continue as long as the actual demand stays low.

LME primary aluminium inventory increased by 3,400 tonnes to 4.4 million tonnes on 3 July from the previous day. The inventory decreased in USA while increased in Europe. The inventory didn’t increase widely in Singapore after Chinese government showed an intention to suspend the increase of national stockpiles.