Shanghai Futures Exchange Today: 2nd week that copper inventories fall; Zinc stocks down 26%

Important to know of Today’s flashing news:

• United Kingdom Gross Domestic Product (GDP)QoQ fell to actual 0.3% (while forecast was 0.4%)
• UK GDP year on year fell bellow the forecast to actual 2.1% (2.2% forecast)
• European Consumer Price Index (CPI) YoY grew to actual 1.9% (while forecast was 1.8%)
• Russian Federation Interest Rate Decision fell to actual 9.75% (while expected was 10.00%)
• Canada GDP MoM rose to actual 0.6% (while expected was 0.3%)
• US GDP QoQ rose to actual 2.1% (forecast was 2.0%)

Shanghai Futures Exchange

Shanghai Futures Exchange: Zinc inventories, approved stockrooms fell 40,312 tons – or 25.9% – over the past week to 115,040 tons. As of Friday April 28, the biggest reduce between the SHFE base metals happened. 

The most exterior deliveries this week were in Guangdong district. With 29,982 tons, while Nanchu saw the most stock exit from a single repository – 29,177 tons left its sheds this week.

Growing expectations of tightening supply in the base metals could be behind the fall downs seen in SHFE and London Metal Exchange stocks.

“In the opinion of the International Lead and Zinc Study Group (ILZSG), the global zinc market will see a high supply deficit for the second consecutive year in 2017. The ILZSG puts this deficit at 226,000 tons. Which is only a little lower than the figure predicted six months ago. As with lead, supply and demand for zinc are expected to grow by the same amount [namely 2.6%]. If so, the zinc market will be significantly undersupplied for the fourth time in the last five years.” (Commerzbank) (Metal Bulletin)

Past month recollections & positive future expectations

“During the past month, all base metals have had recent supply disruptions. Copper inventories [on the LME] have fallen over 16%. Also, zinc is down 9%, while lead 8% . Finishing with aluminium failure for 6%. Recent supply disruptions  maybe had impact on this.”

“Still, economic data has also been relatively positive. Predicting that this drop is likely to be only a short-term phenomenon.”

Aluminium and nickel stocks up; others see a decline 

SHFE copper stocks fell 10,830 tons or 4.5% over the past week to 229,361 tons with Shanghai district seeing the most stock – 10,183 tons – leave its sheds, while SIPG Logistics saw the most red metal exit a single warehouse with 7,832 tons.

At the same time Aluminium stocks rose. 12,544 tons to 391,578 tons in the week ended April 28.
Lead stocks at SHFE dipped 218 to 72,070 tons as of Friday.
Nickel stocks at SHFE-bonded warehouses rose 439 tons to 84,334 tons as of Friday.
SHFE tin stocks fell 19 tons to 2206 tons over the past week.