LME's nickel inventories surge due to large nickel influx from China
Time:Thu, 15 Aug 2024 08:24:50 +0800
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The nickel inventory at the London Metal Exchange (LME) surged to nearly 114,000 tons, reaching its highest level in over two and a half years. This increase, largely driven by an influx of nickel from China, contrasts sharply with declining inventories at the Shanghai Futures Exchange (SHFE), which fell to nearly 20,000 tons as of August 2, a four-and-a-half-month low.
On August 13 alone, the LME's nickel inventories grew by 1,308 tons, continuing a two-month trend that has seen a 32.7% increase. In July, 87% of the LME's nickel inventory growth originated from Chinese production, now accounting for 35% of the total inventories.
The weak demand in the Chinese market led to a large amount of domestically produced nickel flowing into the LME's overseas warehouses. Additionally, the registration of Chinese companies for LME trading, such as GEM and CNGR Advanced Material, contributed to the rise in LME inventories and the decline in SHFE stocks.
