| London Metal Exchange Copper Inventory Sees On-Warrant Stock Dip | |
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Copper Industry April Update (Part 4 of 10) (Continued from Part 3) Copper inventory
Total copper inventory with the LME (London Metal Exchange) stood at 0.33 million tons as of April 16. This is almost flat compared to inventory levels in March. LME copper inventory has almost doubled since the start of 2015. The current copper inventory at LME warehouses is the highest it’s been since January last year.
On-warrant inventory
All metal that enters the warehouses is on warrant. These are canceled when the warrant-bearer requests physical delivery. Then, warrants are no longer available for trading. It’s important to note that the warehoused inventory levels aren’t affected by cancelled warrants. Only the physical movement of the metal affects these levels.
You could also say that only the on-warrant metal is available for delivery. Instead of total copper inventory, it’s better to look at on-warrant copper inventory.
On-warrant stocks decline
The chart above shows the trend in on-warrant LME copper inventory. On-warrant copper stocks have come down ~12% in the last month. As of April 16, 76.14% of total LME copper inventory is on warrant, compared to 85% a month back. Nevertheless, the on-warrant stocks are almost double what they were in April 2014.
A declining on-warrant inventory means that more metal is being booked for delivery. This is generally associated with strong copper demand. Copper producers including Turquoise Hill Resources (TRQ), McEwen Mining (MUX), and Newmont Mining (NEM) benefit from higher copper demand. NEM currently forms 5.49% of the Market Vectors Gold Miners ETF (GDX). Barrick Gold (ABX) forms 6.77% of GDX.
Along with LME copper inventory, investors should track copper stocks in China. In the next part, we’ll analyze the latest trends in Chinese copper inventory.
Continue to Part 5 Browse this series on Market Realist:
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McEwen Mining
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PRODUCTEUR |
CODE : MUX |
ISIN : US58039P1075 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
McEwen Mining est une société développant des projet miniers d'or basée au Canada. McEwen Mining est productrice d'or, d'argent au Mexique et en Argentine, en développement de projets d'argent et d'or au Mexique, et détient divers projets d'exploration au Mexique. Ses principaux projets en production sont MAGISTRAL MINE au Mexique et SAN JOSE ARGENTINA en Argentine, son principal projet en développement est EL GALLO MEXICO au Mexique et ses principaux projets en exploration sont PALMARITO, GOLD PICK AND GOLD RIDGE, TONKIN PROJECT et MAGISTRAL au Mexique et LOS AZULES ARGENTINA et LIMO en Argentine. McEwen Mining est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 3,9 milliards US$ (3,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 29 juillet 2022 à 0,32 US$, et son plus haut niveau récent le 25 avril 2024 à 11,67 US$. McEwen Mining possède 337 054 594 actions en circulation. |