Supply interruption, low global inventory, soaring copper and nickel prices

Concerns about supply disruptions and low global inventories are the reasons for higher prices, surpassing concerns about the impact of the Russian Ukrainian conflict on global economic growth, rising interest rates in developed countries and China's economic slowdown.
On Monday, government data showed that Chile accounted for more than a quarter of global copper production, and its production in January hit its lowest level since 2011.
Although warehouse inventories in China have been rising, as the country's copper refineries account for more than half of global production, restocking is still under pressure. In February, the global copper inventory held by LME, Shanghai Futures Exchange and Comex in New York fell to only 200000 tons, which was almost insufficient to meet the three-day global consumption.
"There are more signs that geopolitical risks have turned into supply disruptions," investment bank ing said in a report quoted by the Shanghai metal market after the world's three major container shipping companies suspended shipments to Russia.
Ing said there were signs of increasingly limited metal flows in Russia due to transport problems. Rusal is the largest aluminum producer outside China, and Norilsk accounts for about 10% of the world's refined nickel production. Global nickel inventories are at their lowest level since 2019.
Bloomberg reported that supply in Europe was particularly tight, and the soaring premium of European spot metals prompted traders to turn to bulk carriers, Metal was transported all the way from the warehouse in Port Klang, Malaysia - even before the outbreak of the Russian Ukrainian conflict: "a large amount of aluminum and copper regularly flows from St. Petersburg, Russia to Rotterdam and fleshingen ports in Europe, and they face the threat of interruption as the chaos of the shipping market spreads."