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How Global Economic Data Dragged Base Metals Down

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Part 5
How Global Economic Data Dragged Base Metals Down PART 5 OF 5

London Metal Exchange: Base Metal Inventory Update

Copper inventory levels

This article explains the movement of base metal inventory levels of the LME (London Metal Exchange) warehouse in the week ended November 13. the warehouse levels of LME copper fell by 2.8% and ended the week at 258,700 tons.

London Metal Exchange: Base Metal Inventory Update

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In 2015, the highest inventory level of copper was recorded on August 28, at 371,250 tons. After falling from the peak stock level, the inventory levels are now in a complete downtrend, falling by 30% since then. Even though the inventory levels are falling, they were unable to support copper prices last week because of weak economic data from china and a strong US dollar.

Aluminum inventories fell by 29%

The inventory levels of LME Aluminum fell by 1% in the week ended November 13, and reached 2,979,350 tons. The aluminum stock levels in LME have been in a complete downtrend since the beginning of 2015, falling by 29%. In the week ended November 13, the fall in inventory levels wasn’t enough to support aluminum prices because of weak global demand for the metal. The inventory levels of LME Nickel fell by 1.5% and reached the stock level of 418,056 tons. Nickel inventory levels reached a yearly peak on June 4, 2015, and fell by 11% since the peak.

Zinc inventory levels

In the week ended November 13, the inventory levels of zinc in LME fell by 1.7% and reached 558,225 tons. The LME Zinc formed the peak in its inventory levels on September 15 and has been in a downtrend ever since. Since the peak in September, the stock levels of zinc fell by 9.5%. Even though the falling zinc stock levels are a good sign for zinc commodity prices, the global demand outlook of zinc has been keeping the prices lower.

Lead and tin inventory levels

In the week ended November 13, the inventory levels of tin were up by 5.3%, recorded as 5,415 tons. This rise in stock levels kept the pressure on tin prices, and tin prices consolidated last week. The inventory levels of lead fell by 6% last week and reached 8,850 tons.

Even though the inventory levels of major base metals are in support to base metal prices, this isn’t reflecting prices due to weak global outlook. This also resulted in the fall of miners like BHP Billiton (BHP), Freeport-McMoRan (FCX), Alcoa (AA), and Glencore (GLEN) in the week ended November 13. The base metal ETFs like the SPDR S&P Metals & Mining ETF (XME) also ended the week in losses.

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