From Investing.com: 2024-02-26 04:33:00

In China, inventories of base metals and steel have increased, pointing to slower demand and excess supply. Chinese steel mills saw a rise in inventories to 19mt in mid-February, with crude steel production also up. Global steel output fell 1.6% YoY in January, with lower production in China and Brazil being offset by rises in India, Turkey, and Iran.

Base metals inventories in China surged due to weak consumption during the recent holiday. Copper stocks spiked by 109.6% WoW, zinc inventories rose by 164% WoW, and aluminium and lead stocks also increased significantly. Speculators trimmed net shorts and increased gross long positions, impacting the commodities market.

On the energy front, oil prices remain under pressure, with the market facing slowing demand and rising ex-OPEC supply. US oil rigs increased by six, reaching the highest count since December 2023. The Wafa oil field in Western Libya has resumed operations after a temporary halt due to wage protests, while gas pipeline operations to Italy are back on track.

Ukraine has seen a surge in grain exports through its seaports, with 30mt of grains shipped since August 2023. USDA reported weak grain sales in the US, with lower soybean, wheat, and corn exports than previous periods. Money managers increased their net bearish bets in CBOT corn, soybeans, and wheat, indicating a less optimistic market outlook.



Read more at Investing.com:: China’s Metal Inventories Increase on Slower Demand and Ample Supply in Short-Term