Metal Stocks at LME Warehouses Dipped to Lowest Level in 25 Years

SEATTLE (Scrap Monster): The warehouse stockpiles of major metal categories hit the lowest level in 25 years on the London Metal Exchange (LME).

The available inventories of six main metals traded on the exchange recorded a decline by almost two-thirds during the previous year, noted the exchange press release. The aluminum inventories witnessed 72% decline over the prior year, whereas the zinc inventories plunged by nearly 90%. The collective inventory not already marked for withdrawal hit the lowest level towards the end of the year.

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The tight stockpiles reflects the tension that gripped the metals market during the course of the year. The exchange was badly hit due to constrained supplies. The fears of recession in world’s major economies led to fears about weakening demand, which also affected market sentiments.

The year 2022 turned out to be one of the exchange’s most dramatic years in its history. The exchange has been facing regulatory probes and lawsuits over sudden squeeze in nickel market prices.

The worst performing metal during 2022 was tin, whose prices plunged by more than a third. Incidentally, the commodity is set to register its biggest ever annual decline. The prices of other major commodities such as copper, zinc and aluminum too witnessed drops by over 10% during the year.