LME Non-Ferrous Metals Inventory Snapshot: Mixed Signals Across Key Commodities

The London Metal Exchange (LME) released its inventory data for January 2, revealing a complex picture across major non-ferrous metals markets. Most commodities experienced inventory declines, signaling steady demand absorption, while nickel bucked the trend with a modest increase.

Inventory Movements: A Closer Look

Lead led the decline with the most substantial withdrawal at 2,600 tons, bringing total inventories to 239,325 tons. Copper followed closely, shedding 2,100 tons to reach 145,325 tons, suggesting continued industrial appetite for the key industrial metal. Aluminum, the largest non-ferrous metals stockpile in the LME system, declined by 2,500 tons to 509,250 tons, indicating steady consumption despite elevated warehouse levels.

Zinc inventory contracted by 1,300 tons, settling at 106,325 tons, while tin registered a marginal 5-ton decrease to 5,415 tons. The only exception to the bearish trend was nickel, which saw inventories increase by 120 tons to reach 255,282 tons.

What The Numbers Tell Us

The predominance of inventory draws across most non-ferrous metals commodities reflects robust underlying demand and suggests that supply remains relatively tight in the market. However, nickel’s uptick hints at potential weakness in specific demand sectors or rising imports into the LME system.

Traders monitoring these non-ferrous metals stockpiles should note that sustained declines could continue supporting prices if production fails to keep pace with consumption trends.