Metals Market Update: Zinc Inventories Drop, Copper Production Rises, Steel Inventories Decline, and Central Banks Boost Gold Reserves

Metals – Zinc exchange inventories fall

LME data shows that exchange inventories fell by 3,175 tonnes to 148,400 tonnes yesterday. The majority of the outflows were reported from warehouses in Singapore and Malaysia. Meanwhile, on-warrant stocks extended their decline for a fourth consecutive session, falling by 1,300 tonnes to 89,450 tonnes.

In copper, China’s CMOC Group Ltd. said that it will ship out all of its stranded copper stockpiles of about 240kt in the DRC by the end of this month. The company also expects its copper output from the DRC to rise to 600kt in 2024 following capacity upgrades.

Recent data from the China Iron and Steel Association (CISA) shows that steel inventories at major Chinese steel mills fell to 14.7mt in late August, down 11.5% compared to mid-August. The association also reported that crude steel production at major mills fell 7.7% from mid-August to 2.05mt/d in late August, as weaker profit margins weighed on output.

World Gold Council data shows that central banks continued to expand their gold reserves, reporting net additions of around 55t in July. The People’s Bank of China (PBoC) was once again the largest buyer, adding 23t during the month, resulting in year-to-date purchases of 126t. Meanwhile, the National Bank of Poland (NBP) was the second largest buyer, increasing its gold reserves by 22t over July to a total of 299t.