Shanghai-bonded copper stocks extend decline by 16,500 mt on week

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.

SMM copper cathode inventories across major regions in China fell by 2,100 mt from last Friday to 156,300 mt as of Monday July 26.

SHFE nonferrous metals all went up today, amid the dovish statement by the European Central Bank president, the high US jobless claims, and the high July PMI in Eurozone.

Shanghai base metals all cruised higher on Friday morning after the head of the Federal Reserve told Congress he saw no need to rush the shift towards tighter post-pandemic monetary policy. Meanwhile, their counterparts on the LME mostly cruised lower.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 18,000 mt from last Thursday to 858,000 mt as of July 8.

Shanghai base metals were mostly higher on Monday morning as investors digested a better-than-expected US jobs report. Meanwhile, their counterparts on the LME fell for the most part.

Shanghai base metals mostly cruised lower on Tuesday morning despite gains overnight on Wall Street that saw the S&P 500 and Nasdaq Composite touching fresh record closing highs. Meanwhile, their counterparts on the LME traded mixed.

SHFE nonferrous metals rose for the most part on Thursday April 29 as investors reacted to the US Federal Reserve's decision to keep its easy money policy in place.

Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, declined 25,000 mt on the week to 1.12 million mt as of April 29, and Wuxi mainly contributed to the decline. 

SHFE nonferrous metals closed higher across the board on Monday April 26 as investors gear up for a busy week on the data and earnings front.