LME ends year with extremely low metal stocks

Existing stocks of six base metals traded in the LME fell by two-thirds in 2022; Aluminum decreased by 72%, while zinc shrank by 90%. Collectively, stocks currently unmarked for pullback hit the lowest in data going back to 1997 on Thursday, ending the year with only a fractional increase.

The LME introduced new rules that allow deferral to avoid future congestion, but the exemptions come with costly fees.

Tight stocks also reflect the tensions that have gripped metals markets for much of this year, between the tight supply on the one hand and the weakening demand on the other, amid recession threats in the world's key economies.

As we enter 2023, a key debate in metals markets is whether the decline in industrial activity worldwide and recovering supply will help replenish the industry's worn-out reserves.