LME – ING zinc stocks rise

LME zinc stocks rise, copper stocks fall quite a bit, note ING commodities strategists Ewa Manthey and Warren Patterson.

The lowest net longing for Copper in more than half a year

“LME zinc stocks rose by 23,625 tonnes (the biggest daily addition since Nov 22, 2023) to 263,150 tonnes yesterday – the highest since April 3, 2024. Most inflows were reported from Singapore warehouses. Stockpiles under the mandate reported gains after falling for four consecutive sessions, rising by 23,675 tonnes to 238,475 tonnes yesterday.”

“In Copper, recent statements from BHP suggest that the main union at the Escondida Copper mine in Chile has refused to resume talks following a new invitation from the company to reach an agreement. The company said it had initiated the demobilization of striking workers and activated contingency plans. In the meantime, mine workers who are not part of the negotiations can continue to work.”

“The latest LME COTR report shows that investors reduced their net bullish position in Copper by 6,681 lots to 59,385 lots in the week ending August 9, 2024. This is the lowest net long for Copper from the week ending January 26, 2024, following weak demand. perspective. A similar move was seen in aluminum, with speculators reducing their net bullish bets by 1,960 lots for the sixth consecutive week to 96,543 lots in the last reporting week.”