Key Takeaways:
LME copper fell $214 to $13,594 per tonne, leading a broad decline across base metals on Wednesday as traders weighed demand signals against rising inventory levels.
LME warehouse data shows total lead stocks surging to their highest since 1970 after Trafigura delivered more than 160,000 tons into Singapore warehouses, according to exchange records. Commodity trader Glencore plans to withdraw 30,000 tons of lead from LME warehouses, while Hartree Partners also cancelled lead stocks, two industry sources said.
Aluminum slipped $4 to $3,188 per tonne, zinc eased $6 to $3,586, and lead edged $3 lower to $1,894. Nickel was nearly flat at $53,326 per tonne, while tin posted the steepest decline, dropping $596 to $53,326. Cobalt held steady at $56,290.
The broad-based selloff comes as LME lead warrant cancellations reached 65,225 tons, or 14 percent of total stocks, with all but 1,725 tons located in Singapore. Daily LME rent in Singapore for lead stands at 51 cents per ton, making the city-state attractive for storage deals that can generate more than $5 million annually on 30,000 tons. The next demand signal for base metals will be China's July 31 manufacturing PMI release.
This article is for informational purposes only and does not constitute investment advice.
