METAL stockpiles are surging in Singapore, and slowing global demand is only part of the reason.
Refined zinc and lead have been pouring into Singapore since the middle of last year, making one of the smallest countries in the world a critical vault for companies including Trafigura Group and Glencore.
The combined inventories of the two base metals in the London Metal Exchange’s (LME) Singapore-registered warehouses have grown more than 10-fold since May 2023 to a record of almost 430,000 tonnes in recent weeks, according to bourse data.
Behind it, in part, is the slowdown in the global economy. While bets on a US recession are rising, the biggest culprit is China, where a years-long property crisis and a lack of consumer spending has rippled across the globe.
“Soft demand in China is the ultimate reason,” said Jia Zheng, the head of trading with Shanghai Soochow Jiuying Investment Management.
“Traders are waiting for the Chinese demand recovery so they can ship these supplies to the world’s largest market quickly.
