Discover the latest trends in the financial market as concentration shifts in metal stocks. According to LME statistics, the share of Nickel stocks of Russian origin decreased from 27% in June to 24% in July, while Copper stocks also saw a decline from 27% to 21%, as highlighted by Commerzbank’s commodity analyst Barbara Lambrecht.
Russian Aluminium Dominance in LME Stocks on the Rise
Despite the decrease in Russian Nickel stocks, the increase in stocks from other sources, possibly due to newly approved types of Nickel in Indonesia and China, led to a minimal change in Russian material stocks post-sanctions tightening in April.
On the other hand, Aluminium stocks of Russian origin remained stable in July, while stocks from other origins on the LME decreased, resulting in a rise from 50% to 65%. Notably, Aluminium stocks from India experienced a significant reduction after a build-up in May.
Analysis:
The financial market is witnessing a shift in metal stocks, with Nickel and Copper showing a decline in Russian origin stocks. This change is attributed to an increase in stocks from other sources, potentially influenced by new Nickel types in Indonesia and China. Conversely, Aluminium stocks of Russian origin remained steady, while stocks from other origins decreased, leading to a rise in their proportion. Understanding these trends can help investors make informed decisions regarding their investment portfolios.