On January 21st, the London Metal Exchange (LME) reported the following non-ferrous metal inventory levels and changes: 1. Copper inventory: 159,400 tons, an increase of 3,100 tons from the previous day. 2. Aluminum inventory: 507,175 tons, an increase of 24,175 tons from the previous trading day. 3. Nickel inventory: 284,664 tons, a decrease of 72 tons from the previous day. 4. Zinc inventory: 111,850 tons, a decrease of 450 tons from the previous day. 5. Lead inventory: 222,650 tons, a decrease of 2,925 tons from the previous day. 6. Tin inventory: 7,210 tons, an increase of 250 tons from the previous day.
Analysis
Copper
Copper inventories increased by 3,100 tons, indicating ample supply or weak demand, which generally has a bearish impact on spot prices. The inventory increase of approximately 1.94% could exacerbate market supply pressure and suppress price increases.
Aluminum.
Aluminum inventories increased significantly by 24,175 tons (an increase of approximately 4.76%), reflecting a substantial supply surplus and exerting strong downward pressure on spot prices. The rapid accumulation of inventory is likely to dampen market sentiment and lead to further price declines.
Nickel
Nickel inventories decreased slightly by 72 tons (a decrease of approximately 0.025%), indicating slightly tighter supply, which is mildly positive for spot prices. However, the magnitude of the change is small, and its impact is limited, likely only supporting short-term price stability.
Zinc
Zinc inventories decreased by 450 tons (a decrease of approximately 0.4%), indicating signs of tight supply and providing a slight boost to spot prices. The decline in inventories may boost market confidence, but the magnitude is small, resulting in only a moderate positive impact.
Lead
Lead inventories decreased by 2,925 tons (a decrease of approximately 1.31%), reflecting strong demand or reduced supply, which is generally positive for spot prices. The significant decrease in inventory could lead to a moderate price increase.
Tin
Tin inventories increased by 250 tons (an increase of approximately 3.47%), indicating an oversupply and generally bearish sentiment for spot prices. Given the relatively small base level of inventory, this significant increase could suppress any price rebound.
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