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METALS MORNING VIEW 16/05: Metals prices recover after Tuesday’s show of weakness

Base Metals News - Wed, 05/16/2018 - 07:40

Most of the base metals prices on the London Metal Exchange were little changed on the morning of Wednesday May 16, the exceptions were zinc (+0.6%) and tin (-0.5%). Copper was up by 0.1% at $6,818 per tonne.

Volume on the LME has been below average, with 3,245 lots traded as at 06.27 am London time.

This follows a day of two halves on Tuesday where prices came under pressure as the morning progressed but ran into buying toward the end of the day.

Gold and silver prices were little changed this morning, with gold up 0.1% at $1,293.66 per oz, while the platinum group metals (PGM) are up by around 0.3%. This follows a day of weakness on Tuesday that saw the precious metals complex close down by an average of 1.7%, with gold prices breaking below support at $1,300 per oz to set a low at $1,288.70 per oz. The firmer dollar and stronger US treasury yields dominated over the heightened tensions in the Middle East.

The base metals prices on the Shanghai Futures Exchange were mixed with copper and lead prices down by 0.5% and 0.4% respectively, with the former at 51,010 yuan ($8,014) per tonne, while the rest of the complex was up between 0.1% for tin and 0.9% for zinc.

Spot copper prices in Changjiang were down by 0.5% at 50,630-50,790 yuan per tonne and the LME/Shanghai copper arbitrage ratio has firmed to 7.48, from 7.47 on Tuesday.

In other metals in China, iron ore prices were unchanged at 487 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices were up by 0.3%, while gold and silver prices were down by 1.2%and 1.1% respectively.

In wider markets, spot Brent crude oil prices were up by 0.15% at $78.22 per barrel this morning, while the yield on US 10-year treasuries continues to climb and was recently quoted at 3.07%. Meanwhile, the German 10-year bund yield has firmed to 0.64%.

Equity markets in Asia were mixed on Wednesday: Nikkei (-0.34%), Hang Seng (+0.08%), CSI 300 (-0.09%), the ASX 200 (+0.33%) and the Kospi (+0.11%). Stronger US treasury yields and some weakness in Japanese data with first quarter preliminary gross domestic product (GDP) falling 0.2% from the prior quarter, seem to be weighing on sentiment. This follows a weaker performance in western markets on Tuesday, where in the US the Dow Jones closed down by 0.78% at 24,706.41, and in Europe where the Euro Stoxx 50 closed down by 0.04% at 3,564.29.

The dollar index, at 93.21, was consolidating Tuesday’s gains this morning – Tuesday’s high was 93.46 – the brief pullback between May 10 and May 14, appears to have just been a pause in the rally.

The other major currencies that had been weakening after the dollar strengthened were also consolidating this morning: euro (1.1838), sterling (1.3509), the Australian dollar (0.7482) and the yen (110.26). That said, they continue to look vulnerable. The yuan has also weakened, it was recently quoted at 6.3676 and most of the emerging market currencies we follow are looking weaker again, the exceptions being the rupee that is rebounding off recent lows.

The economic agenda is busy today, with data already out showing a mixed picture in Japan. GDP turned negative, GDP prices climbed 0.5%, while industrial production improved to 1.4%, from 1.2% previously. Data out later includes German and EU consumer price indices (CPI), UK leading indicators, with US data including building permits, housing starts, industrial production, capacity utilization, mortgage delinquencies and crude oil inventories.

The base metals generally remain rangebound, although trading seems to be more volatile and nervous. The underlying trends are that dips are bought into, suggesting underlying demand remains robust, but there is no urgency to chase prices higher. With US treasury yields strengthening we need to be wary of corrections in broader markets that could lead to another risk-off moment, but in the absence of that we expect more rangebound trading. We would expect a more bullish scenario to unfold if economic data starts to pick-up again.

Palladium prices are holding up relatively well, supported by tight supply fundamentals, but the other precious metals are suffering due to the opportunity cost of holding them increasing in line with rising US yields. Given heightened tensions over trade, sanctions, the Middle East and now with North Korea threatening to cancel the summit with the United States, geopolitical tensions could start to dominate again. We wait to see whether Tuesday’s break lower in gold prices was a false break or not.

The post METALS MORNING VIEW 16/05: Metals prices recover after Tuesday’s show of weakness appeared first on FastMarkets.

Categories: Metals Industry News

GLOBAL COPPER WRAP: Shanghai premiums edge upward; increased supply pressures European market

Base Metals Market - Wed, 05/16/2018 - 07:35
Global copper markets trended in opposite directions over the past week, with premiums in China rising, European premiums weakening and the US Midwest premium holding steady – though participants in the United States expect to see a modest gain in the Midwest premium before the month ends.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 16/05: Force of new technology pushing LME volumes higher; Japanese, European Ali premiums weaken; Uncertainty clouds US non-ferrous scrap export market

Base Metals Market - Wed, 05/16/2018 - 05:30
Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Wednesday May 15.
Categories: Metals Industry News

LME WEEK ASIA 2018: ‘The force of new technology is pushing LME volumes higher’ – Marex’s Wolf

Base Metals Market - Wed, 05/16/2018 - 05:25
The increased acceptance by humans that they cannot battle against the rise of technology and algorithmic trading has brought numerous changes to the type of trades taking place on London Metal Exchange, according to Marex Spectron’s head of market analytics Guy Wolf.
Categories: Metals Industry News

LIVE FUTURES REPORT 16/05: SHFE copper prices weaken on stock increases, dollar strength; other metals diverge

Base Metals Market - Wed, 05/16/2018 - 04:50
Base metals prices on the Shanghai Futures Exchange diverged during Asian morning trading on Wednesday May 16, with rising stocks and a surge in the dollar sinking copper.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 16/05: Force of new technology pushing LME volumes higher; Japanese, European Ali premiums weaken; Uncertainty clouds US non-ferrous scrap export market

Base Metals News - Wed, 05/16/2018 - 04:30

Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Wednesday May 15.

Base metals prices on the Shanghai Futures Exchange diverged during Asian morning trading on Wednesday, with rising stocks and a surge in the dollar sinking copper.

Check Metal Bulletin’s live futures report here.

 

SHFE snapshot at 11.01am Shanghai time Most-traded SHFE contracts Price (yuan per tonne) Change since previous session’s close (yuan) Copper (Jul) 50,990 -220 Aluminium (Jul) 14,765 45 Zinc (Jul) 23,840 60 Lead (Jun) 19,340 -150 Tin  (Sep) 145,950 -340 Nickel  (Jul) 107,500 350

 

LME snapshot at 04.01am London time Latest three-month LME Prices Price ($ per tonne) Change since previous session’s close ($) Copper 6,822 14 Aluminium 2,327 0 Lead 2,354 6 Zinc 3,079 17 Tin N/A N/A Nickel 14,465 40

The increased acceptance by humans that they cannot battle against the rise of technology and algorithmic trading has brought numerous changes to the type of trades taking place on London Metal Exchange, according to Marex Spectron’s head of market analytics Guy Wolf.

Aluminium premiums in Japan and Europe fell over the past week, with supply concerns relating to the sanctions placed on Russian aluminium producer UC Rusal continuing to ease. In the United States, limited spot activity kept the Midwest-delivered premium flat.

The US’ non-ferrous scrap exports rose further in March but a cloud of uncertainty hangs over the industry due to lagging shipments of aluminium and copper scrap to China so far this year and concerns of future trade with the nation.Steelmakers in the US increased their purchases of foreign raw materials during March in order to supplement their melting needs due to a combination of further anticipated price increases for domestic ferrous scrap and strong order books for finished products.

Russia’s Magnitogorsk Iron & Steel Works has sped up the implementation of major upstream investment projects included in its Strategy-2025 plan, the company’s director for economics said last week.

Earnings at Brazilian steel and iron ore producer CSN dropped by 7% year-on-year in the first quarter of 2018 because of a fall in international iron ore prices over the same period.

 

The post EUROPEAN MORNING BRIEF 16/05: Force of new technology pushing LME volumes higher; Japanese, European Ali premiums weaken; Uncertainty clouds US non-ferrous scrap export market appeared first on FastMarkets.

Categories: Metals Industry News

GLOBAL ALUMINIUM WRAP: Softer Rusal sanctions push Japanese, European premiums down; US Midwest premium steady

Base Metals Market - Wed, 05/16/2018 - 04:25
Aluminium premiums in Japan and Europe fell over the past week, with supply concerns relating to the sanctions placed on Russian aluminium producer UC Rusal continuing to ease. In the United States, limited spot activity kept the Midwest-delivered premium flat.
Categories: Metals Industry News

GLOBAL ALUMINIUM WRAP: Softer stance on Rusal sanctions push Japanese, European premiums down; US Midwest premium steady

Base Metals Market - Wed, 05/16/2018 - 04:25
Aluminium premiums in Japan and Europe fell over the past week, with supply concerns relating to the sanctions placed on Russian aluminium producer UC Rusal continuing to ease. In the United States, limited spot activity kept the Midwest-delivered premium flat.
Categories: Metals Industry News

WEEKLY BASE METAL PREMIUMS REPORT: 15/05

Base Metals Market - Tue, 05/15/2018 - 21:15
A summary of base metals premiums from across the globe for the week to Tuesday May 15.
Categories: Metals Industry News

LIVE FUTURES REPORT 15/05: LME nickel price finds support; copper, lead edge lower

Base Metals Market - Tue, 05/15/2018 - 18:00
Base metals on the London Metal Exchange were mostly lower at the close of trading on Tuesday May 15, with copper falling 1.1%.
Categories: Metals Industry News

NORTH AMERICAN MORNING BRIEF 15/05: LME base metals consolidate; South Korea’s PPS zinc tender; LME Asia Week

Base Metals Market - Tue, 05/15/2018 - 12:20
The latest metal markets news and price moves to start the North American day on Tuesday May 15.
Categories: Metals Industry News

SHFE vs LME physical arbitrage 15/05: Copper, aluminium, zinc, nickel

Base Metals Market - Tue, 05/15/2018 - 11:30
The arbitrage for copper, aluminium, zinc and nickel imported into China on Tuesday May 15*
Categories: Metals Industry News

LIVE FUTURES REPORT 15/05: LME base metals consolidate; nickel firm

Base Metals Market - Tue, 05/15/2018 - 10:40
Base metals on the London Metal Exchange were mostly lower during morning trading on Tuesday May 15, with broad consolidation taking place across the complex.
Categories: Metals Industry News

South Korea’s PPS zinc tender premium edges higher

Base Metals Market - Tue, 05/15/2018 - 10:33
South Korea’s Public Procurement Service (PPS) has awarded a 1,000-tonne special-high-grade zinc tender at a premium of $151 per tonne, a higher premium than one it had awarded for a similar zinc tender in late April.
Categories: Metals Industry News

METALS MORNING VIEW 15/05: Nickel, lead in the driving seat; other metals rangebound

Base Metals Market - Tue, 05/15/2018 - 09:25
Base metals prices on the London Metal Exchange were on divergent paths on the morning of Tuesday May 15, with copper, nickel, lead and tin down by between 0.2% and 0.6%, while aluminium was unchanged and zinc prices had rebounded by 0.7%.
Categories: Metals Industry News

Rise in Chinese aluminium output, stocks could put downward pressure on prices

Base Metals Market - Tue, 05/15/2018 - 08:53
Chinese electrolytic aluminium production reached 2.77 million tonnes in April, up 1.1% from the same period last year, with growing stocks likely to put downward pressure on prices.
Categories: Metals Industry News

METALS MORNING VIEW 15/05: Nickel, lead in the driver’s seat; other metals rangebound

Base Metals News - Tue, 05/15/2018 - 08:25

Base metals prices on the London Metal Exchange were on divergent paths on the morning of Tuesday May 15, with copper, nickel, lead and tin down by between 0.2% and 0.6%, while aluminium was unchanged and zinc prices had rebounded by 0.7%.

Volume on the LME has been average, with 4,526 lots traded as at 06.55 am London time.

Precious metals prices were broadly down with gold off by 0.1% at $1,311.91 per oz, silver prices down by 0.2%, palladium prices weaker by 0.3%, while platinum prices were up by 0.1%. A firmer dollar has acted as a headwind again, negating any bullishness due to increased tensions in the Middle East.

Copper and lead prices on the Shanghai Futures Exchange were weaker by 0.7% and 0.4% respectively this morning, with copper prices at 51,230 yuan ($8,080) per tonne, while the rest of the complex was stronger. Nickel prices led the gains with a 1.4% rebound, while aluminium, zinc and tin prices were up by between 0.1% and 0.3%.

Spot copper prices in Changjiang were down by 0.4% at 50,900-51,040 yuan per tonne and the LME/Shanghai copper arbitrage ratio has rebounded to 7.47 from 7.42 on Monday.

In other metals in China, iron ore prices were up by 0.1% at 484.50 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices were down by 0.4%, while gold and silver prices were down by 0.4%and 1% respectively.

In wider markets, spot Brent crude oil prices were down by 0.32% at $78.21 per barrel this morning after a strong performance on Monday. The yield on US 10-year treasuries has climbed back above 3% and was recently quoted at 3.02%, while the German 10-year bund yield has firmed to 0.62%.

Equity markets in Asia were weaker on Tuesday: Nikkei (-0.21%), Hang Seng (-1.05%), CSI 300 (-0.04%), the ASX 200 (-0.61%) and the Kospi (-0.71%). Stronger US treasury yields and some weakness in Chinese retail sales seem to be weighing on sentiment. This follows a flat to firmer performance in western markets on Monday, where in the US the Dow Jones closed up by 0.27% at 24,899.41, and in Europe where the Euro Stoxx 50 closed up by 0.01% at 3,565.74.

The dollar index was firmer this morning at 92.72 – this follows Monday’s rebound off a low of 92.24 – the brief pullback between May 10-14, appears to have been just a pause.

The rebound in the dollar has halted the rebounds in the other major currencies: euro (1.1928), sterling (1.3551), the Australian dollar (0.7515) and the yen (109.890). The yuan has also weakened, it was recently quoted at 6.3506 and most of the emerging market currencies we follow are looking weaker again.

The economic agenda is busy today, with data already out showing a mixed picture in China. The country’s fixed asset investment fell to 7%, having previously been up 7.5%, retail sales increased 9.4% after a 10.1% rise, but industrial production surprised to the upside with a 7% gain, after a previous reading of 6%. Japan’s tertiary industrial activity fell 0.3% and Germany’s first-quarter preliminary gross domestic product (GDP) climbed 0.3%, having been expected to climb 0.4% after a 0.6% rise in the fourth quarter.

European data out later includes the French consumer price index (CPI), data on UK employment, EU GDP, German and EU ZEW economic sentiment and EU industrial production. US data including retail sales, the Empire State Manufacturing Index, business inventories, housing market index and TIC long-term purchases is also due. In addition, US Federal Open Market Committee member John Williams is speaking.

The base metals generally remain rangebound with upside initiatives running into selling, while underlying sentiment remains strong enough to support price dips.

The two metals attempting a move on the upside are lead and nickel – lead probably because of the possibility of US sanctions against Iran which could impact lead exports. Meanwhile, nickel prices are upbeat as more nickel is now being consumed domestically in Indonesia, and therefore less is available for export, while the country ramps up stainless steel production.

On balance, across the base metals complex as a whole, we feel underlying demand is good, but with economic data not great, consumers feel in little need to chase prices higher.

The precious metals are oscillating sideways and most are in the lower half of their recent trading ranges, although palladium prices are holding up a bit higher than the rest of the complex. The stronger US treasury yields and firmer dollar seem to be keeping the cap on prices, even though there are heightened tensions over trade, sanctions and in the Middle East. We expect more sideways trading for now.

The post METALS MORNING VIEW 15/05: Nickel, lead in the driver’s seat; other metals rangebound appeared first on FastMarkets.

Categories: Metals Industry News

EUROPEAN MORNING BRIEF 15/05: SHFE base metals prices diverge; EV nickel demand to surge tenfold by 2025; Mn ore, alloy prices slide further

Base Metals Market - Tue, 05/15/2018 - 05:25
Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Tuesday May 15.
Categories: Metals Industry News

LIVE FUTURES REPORT 15/05: SHFE base metals prices diverge; copper down amid disappointing data, stock inflows

Base Metals Market - Tue, 05/15/2018 - 04:45
Base metals prices on the Shanghai Futures Exchange were on divergent paths during Asian morning trading on Tuesday May 15, with copper down amid disappointing Chinese data and rising stock levels.
Categories: Metals Industry News

EUROPEAN MORNING BRIEF 15/05: SHFE base metals prices diverge; EV nickel demand to surge tenfold by 2025; Mn ore, alloy prices slide further

Base Metals News - Tue, 05/15/2018 - 04:25

Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Tuesday May 15.

Base metals prices on the Shanghai Futures Exchange were on divergent paths during Asian morning trading on Tuesday, with copper down amid disappointing Chinese data and rising stock levels.

Check Metal Bulletin’s live futures report here.

SHFE snapshot at 10.44am Shanghai time Most-traded SHFE contracts Price (yuan per tonne) Change since previous session’s close (yuan) Copper (Jul) 51,280 -280 Aluminium (Jul) 14,695 60 Zinc (Jul) 23,715 160 Lead (Jun) 19,380 -5 Tin  (Sep) 145,750 -380 Nickel  (Jul) 106,870 380

 

LME snapshot at 03.44am London time Latest three-month LME Prices Price ($ per tonne) Change since previous session’s close ($) Copper 6,875 -10 Aluminium 2,317 -2 Lead 2,381.50 -3.5 Zinc 3,079 24 Tin 20,980 30 Nickel 14,370 -130

Mass production of electric vehicles (EVs) will transform the nickel market, which must evolve from pricing and supply perspectives in order to meet the anticipated surge in demand, a Vale executive said ahead of Metal Bulletin’s 6th International Nickel Conference, which begins Thursday May 31 in Toronto, Canada.

Manganese prices dropped further in China last week on weaker demand downstream. Check out Metal Bulletin’s latest weekly global manganese wrap here.

The commission appointed to draft the regulations required for the Democratic Republic of Congo’s new mining code has completed its work and will now report back to the Minister of Mines, major international mining companies active in the country said.

Core earnings at Brazilian ferro-alloys producer Ferbasa declined by 10.16% in the first quarter of 2018, affected by higher costs for energy and raw materials on an annual comparison, Metal Bulletin has learnt.

Both the European spot and Chinese export ammonium paratungstate markets continued to move higher last week amid concerns of supply disruptions due to continued environmental inspections in China.

London-based Harthill Logistics has expended its consultancy services through the appointment of Dessy Nascimentom, the company said.

The post EUROPEAN MORNING BRIEF 15/05: SHFE base metals prices diverge; EV nickel demand to surge tenfold by 2025; Mn ore, alloy prices slide further appeared first on FastMarkets.

Categories: Metals Industry News

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