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London Metal Exchange: A Base Metal Inventory Update

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Copper stock levels fell 

On February 15, 2016, except for the stock levels of aluminum and nickel, the inventory levels of all base metals fell on the London Metal Exchange (or LME). The inventory levels of LME copper saw the biggest fall out of all base metal stock levels. Copper’s inventory levels fell 0.87% and reached 218,000 tons on February 15.

The highest stock level of copper in recent times was recorded as 371,000 tons on August 28, 2015. Copper has fallen by 41.2% since then. The inventory levels of LME aluminum have been in a downtrend since the beginning of 2015. On February 15, 2016, the stock levels of aluminum rose 0.05% to 2,748,000 tons. In the week ended on February 13, LME aluminum inventory levels fell by 1% to 2,746,000 tons. Last year, LME aluminum stock levels fell by 31.7%.

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Inventory levels of nickel remained unchanged

The stock levels of nickel in LME fell 0.22% in the week ended on February 13 and reached 439,000 tons. On February 15, the inventory levels of nickel remained unchanged at 439,000 tons. The stock levels of LME nickel reached a low of 393,000 on December 9, 2015, and have risen 11.7% from that low.

In the week ended February 13, the stock levels of LME zinc fell by 0.93% and reached 460,000 tons. On February 15, stock levels of zinc fell 0.21% to 459,000 tons. The peak inventory level of zinc in recent times was 617,000 tons on September 15, 2015. It’s dropped 25.7% since then.

Stock levels of tin and lead fell

The inventory levels of LME tin fell 0.7% to 4,265 tons on February 15. In the week ended February 13, the stock levels of tin fell 7.0% to 4,295 tons. The inventory levels of tin fell 49% in 2015. The inventory levels of LME lead fell 0.06% and reached 181,000 tons on February 15.

Base metals miners Freeport-McMoRan (FCX), Glencore (GLNCY), and Alcoa (AA) fell 2.6%, 1.7%, and 5.3%, whereas Rio Tinto (RIO) rose 1.2% last week. The SPDR S&P Metals & Mining ETF (XME) rose 1.6% last week.

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