Global Metals Weekly: Inventories reflect tight markets

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Global Metals Weekly: Inventories reflect tight markets

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Global Metals Weekly

Inventories reflect tight markets

Inventories tell a story of tight markets 27 July 2026

Inventory read-across for base metals differs: 1) aluminium inventories remain low Commodities

despite higher Chinese production, 2) copper stocks have become more visible but Global

largely reflect a transfer of material into the US rather than a surplus, 3) zinc inventories Global Commodity Research

are rising in China while shortages persist elsewhere, and 4) nickel inventories have BofA Europe (Madrid)

finally stabilised after Indonesia curtailed production. Overall, stocks point to a tighter Michael Widmer

market than headline figures imply, particularly for aluminium and copper. Meanwhile, Commodity Strategist MLI (UK)

nickel is increasingly driven by regional supply dynamics and government policy. +44 20 7996 0694

michael.widmer@bofa.com

Danica AverionDeclining aluminium inventories support pricing Commodity Strategist

Global aluminium production is down YoY YTD despite rising output in China, on MLI (UK)

disruptions in the Middle East and production losses elsewhere. China’s stocks surged in danica_ana.averion@bofa.com

early 2026 but have drawn since April on rising exports and better domestic demand. Francisco Blanch Commodity & Deriv Strategist

Outside China, inventories remain near the lower end of historical ranges and LME BofA Europe (Madrid)

stocks have continued to decline, largely because consumers have removed non-Russian +34francisco.blanch@bofa.com91 514 3070

units. Despite higher Chinese production, tight inventories and declining ex-China supply Clifton White

suggest the market remains vulnerable to shortages, supporting aluminium prices. Commodity Strategist

BofAS