SMM data showed that the aluminium ingot social inventory in China totalled 1.04 million mt as of February 17, 2022, up 90,000 mt from last Thursday February 10.

The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin increased 7,600 mt from last Friday January 28 and rose 3,100 mt from Monday February 7 to 93,100 mt as of February 11.

The Inventories of rebar across Chinese steelmakers and social warehouses stood at 10.43 million mt as of February 10, up 3.74 million mt or 55.9% from pre-CNY holiday level. Stocks are down 3.59 million mt or 25.6% from a year earlier.

The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased 1,700 mt from last Friday January 21 and fell 3,900 mt from last Monday January 17, to 86,600 mt as of January 24.

As of Monday January 24, the copper inventory across major Chinese markets increased 1,400 mt from last Friday to 90,400 mt. The inventories recorded gains on Monday over the weekend for eight straight weeks, but the increment has always been moderate.

The nickel ore inventory at Chinese ports dipped 142,000 wmt from a week earlier to 8.45 million wmt as of January 21.

As of Friday January 7, the copper inventory across major Chinese markets dropped 11,200 mt from Monday January 3 to 83,700 mt.

SMM data showed that China's social inventories of aluminium across eight consumption areas dropped 23,000 mt on the week to 776,000 mt as of January 6.

Global economy is recovering, and the US liquidity contraction is expected to strengthen. When the US dollar, measured by the constant value, appreciates, the absolute price of copper fell (relative concept); the depreciation of the non-US currency suppressed purchase demand and also suppressed demand. The appreciation of the US dollar improves the production enthusiasm of non-US copper-producing regions. As copper is priced in US dollar, the appreciation of the US dollar will lower the production costs. Most of the copper-producing areas are in South America and Southeast Asia.

The moves of SHFE and LME have been heading toward different directions recently. As of December 8, LME lead has been falling for five consecutive sessions. SHFE lead, on the other hand, rallied strongly after falling for two days in a row, and rose 1.88% to 15,175 yuan/mt to close the day.