SHFE & Market today (May 22nd)

As a weaker dollar pushed investor appetite for commodities,  base metals prices on the SHFE went up during Asia morning trading today.


Firstly, the most-traded July copper contract on the Shanghai Futures Exchange rose 580 yuan ($84.30) or 1.3% to 45,880 yuan per tonne as of 03:30 BST. Secondly, over 250,000 lots of the contract have changed hands so far.

In the meantime, the three-month copper contract on the LME rose $29 to $5,676.50 per tonne.

“Commodity markets rallied across the board as the political turmoil in the USA reignited, sparking a weaker US dollar, which helped increase investor appetite in commodities.” (ANZ Research)

The dollar index fell as low as 97.08 last Friday. Which makes it the lowest since November 2016. The political uncertainties in the USA are questioning the US president Donald Trump’s planned infrastructure spending and tax cut plans.

Crude oil prices are also rising supported by the news that members of the Organisation of the Petroleum Exporting Countries will extend their supply cut into next year while also deepening the cuts.

 

Copper stocks in SHFE 

Observing the  deliverable copper stocks at Shanghai Futures Exchange: Approved warehouses rose 1,365 tonnes or 0.7% over last week to 196,358 tonnes as of Friday May 19. Meanwhile the SHFE-LME copper arbitrage remains at a loss – it was at close to $90 per tonne on Friday. Later, on Friday, total copper stocks at LME warehouses fell 3,700 tonnes, to 336,650 tonnes.

Other base metals higher 

When speaking about the SHFE contract, July aluminium contract rose 45 yuan or 0.3% to 14,075 yuan per tonne. Following, the SHFE July zinc price went up 905 yuan or 4.2% to 22,335 yuan per tonne.  Also, the SHFE June lead price climbed 400 yuan or 2.6% to 15,785 yuan per tonne. 

Paying attention to nickel prices, the SHFE September nickel contract gained 2,290 yuan to 78,310 yuan per tonne. Finishing with  the SHFE September tin price which moved up 3,140 yuan. In percentage that is 4.1%, to 147,190 yuan per tonne.

Currencies & data

The Brent crude oil spot price rose 0.6% to $54.11 per barrel as of 03:21 BST on Monday.
Currently, the dollar index rose 0.2% to 97.31 as of 03:20 BST. Observing the Shanghai Composite index, it stood at 3,100.59 recently. Which makes it about 0.32% up.

As of today’s data, those are mainly the European events in slight focus. First of all Europe’s Buba monthly report and then China’s CB leading index due later today. The Euro group meeting will also take place in Brussels later today.
The UK prime minister Theresa May is speaking.

The beginning of the weekly trading seems to have picked up a positive expectations and the upward trends. As for the base metals, for Oil also. Speaking about Important Economic Events today, it is pretty calm day. Nothing bombastic is not currently happening. Later during the day FOMC Members are speaking. Also the RBA Assist Gov Debelle speaks. Some data about RUB Retail Sales are already out. It reached the actual level of -0.4%, while the expected was -1.2%.

Japan Trade Balance fell to actual 482B, while the forecast was 521B.

 

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Next Week Forecasts

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Important weekly events (Short Recollection)

Friday was a day when Oil futures came to a four week’s high. The prices scored a weekly rise of more than 5%. And most noteworthy the optimism on upcoming production cuts rose the positive expectations and market movement. The cuts will be extended to next 9 months. Starting from June 2017 and entering the March of 2018.

U.S. West Texas Intermediate crude leveled up for 98 cents. Counted in percentage that is around 2%. It reached a price of $50.33 at Friday’s close. Observing the period of last 4 weeks, this was the highest price.

Later, the U.S. benchmark rose for $2.49. Which makes it about 5% up weekly.

Meanwhile, ICE Futures Exchange in London saw the price of Brent Oil at $53.61 a barrel by the close. The daily peak was even higher, at %53.82. Which was the unseen level since April 19th.

London-traded Brent futures gained $2.77 on their price. If calculated in percentage, it is the exact 5.2% for the week.

The production cuts will be extended to the next 9 months. Rather than the 6 previously agreed. There are signs of their possible deepening, but it is still not sure. We will definitely know on Thursday.

The fuel rose for 6% on weekly basis. June heating oil also finished at $1.582 a gallon, which makes it 3.7 cents up for a unit.

 

The upcoming Week

The economic events taking place in the week ahead will be very significant for global economy. Traders will all focus on OPEC highly-anticipated meeting. Where the major producing countries will decide on extending the production cuts.

 

Chronology of daily economic events which will impact the market next week:

  1. OPEC Meeting

2.Fed FOMC Meeting Minutes

3.U.S. Revised 1st Quarter Growth Data

  1. U.K. First Quarter GDP – Second Estimate

5.Flash Euro Zone PMIs for May

 

Upcoming week in Numbers & Data

Also worth mentioning, The American Petroleum Institute is going to publish its weekly report on U.S. oil supplies on May 23rd.

On Wednesday, May the 24th, EIA will release the weekly report on data about Oil and Gas.

Later, Thursday meeting is definitely the most important event of the week. The upcoming FINAL decision of OPEC and non-OPEC oil producing countries, about prolonging the outputs. Taking place in Vienna.

Finishing with Friday the 26th, when Baker Hughes will show some weekly reports on U.S. shale drilling, and numbers which put up close the U.S. oil production.

Focus is set directly on Oil prices, and long-term Oil market stability, as an aim for global participants.

In conclusion, the upcoming week will be a bit tense, certainly agitated, interesting to observe, inspiring to comment on. And for sure challenging for all the main market participants. And all the traders and investors who hold their stakes in the market and are waiting for the concrete outcomes.

 

 

 

 

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Extending Oil Cuts; Oil price soon peaking $60

Khalid al-Falih today said that Oil output cuts are definitely going to take its place till march 2018; Global Production cuts are going to recover Oil market in further 5 years. As it is planned. The aim of OPEC and non-OPEC allies is to curb the outputs and lift the Oil prices, in order to achieve rebalance in the ”healthiest” way. This way Oil inventories will be reduced, which leads producing countries closer to their goal:

 

“We believe that continuation with the same level of cuts, plus eventually adding one or two small producers … will be more than adequate to bring the five-year balance to where they need to be by the end of the first quarter 2018.” (Khalid al-Falih, Ryadh)

OPEC’s idea is to conduct the global oil inventories in next 5 years.

Non-OPEC Russia, and The OPEC countries along with the other producers originally made a deal to curb outputs by 1.8 million bpd. Starting January the first, and taking place at least next 6 months. Now is the 5th month of previously mentioned cuts, and the global aim is to rebalance the market by prolonging them.

 

Prices

Following the simple laws of economy, the oil prices have gained backup from curbed outputs.

In a meeting of Saudi Arabia and Russia previously this month, the two main producing countries agreed that these further cuts are going to be of a huge value for global Oil supply. Also, market sometimes needs a hand of help in order to function effectively.

The subject of deepening the Cuts was also mentioned. All of this in order to drain inventories and give some decent back up to the Oil prices.

For those familiar with the subject, it is clear that OPEC organization has huge power in its hands. And a long-time positive branding scale, which gives it credibility and possibility to conduct the Oil market movements.

 

 

ECB

The Economic Commission Board is the panel which precedes the May 25th and the main OPEC meeting. It serves for all the possible options to be discussed, and that way to bring the pre-final-decisions, for scheduled May 25th.

Sources say that the Exact amount of discussed deeper output cuts was not mentioned.  Some countries allies did not receive the news about the deeper cuts so likely. But it is actual subject which will be considered in a final meeting, and it also may impact the market.

OPEC is asking some other Oil producing countries to join the current deals. To enter the supply pact and together make the bigger impact on prices. Turkmenistan, Egypt, as well as the Ivory Coast agreed to attend the meeting on May 25th.

The conclusion is pretty clear. Oil output cuts are willy-nilly going to take place after the meeting. That way, global Oil prices are going to gain support and help the 5-year plans; aiming to rebalance the market.

 

 

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A Brief summary of market movement this week:

 

Wednesday, May the 17th was the day when U.S. stocks felt the worst decline of 2017. The world’s top investors survived huge risks and have lost the amounts of money, due to reports that came out about President Trump, and the market movements which followed.

Observing the indexes, The Dow definitely had the worst story. Speaking of, it have lost 370 points, or 1.78%. While the NASDAQ ans S&P 500 also declined for more than 1,5%. The non so likable thing, is that the three most important U.S. indexes finished the week lower. In negative.

Gold futures 2% up

Meanwhile, investors have found their ”way out” of the bad Wednesday, relying on gold. And piling their money in safe assets.

Most noteworthy, the current political drama is happening in Washington. The President Trump’s bad branding which is forthcoming, put some doubts on his Politics, ideas and plans for the future steps.

Gold futures gained about 2% for the week. Which makes it the very best performance of this precious metal in 5 weeks.

 

Oil prices; real positive expectations

Speaking about the Oil prices, they were oscillating around 50$, gaining levels of 53.30 and a bit more, amid expectations that OPEC is going to extend the cuts. Crude futures followed the levels of 50$ at Friday’s close. The rising expectations  for OPEC to prolong the supply cuts is leading prices up. And it will have its greatest impact after May the 25th.

Noureddine Boutarfa  Algerian Energy Minister, said that all the ally OPEC and most non-OPEC countries support the output cuts. So they would likely impact the market, and push the OIl prices up.

 

 

Sterling hits highs  

 Thursday was the day when pound of sterling survived a mini crash against the dollar, falling to the level of $1.2888. This move was not so expected, because in fact it is not relied to any economic event. Or any important market data. But the dip in pound was very brief. As GBP/USD later recovered.

And reached the level above 1.30$. Which was definitely the highest since September. This impacted the markets, and the investors pockets, and later it showed that the UK retail sales went up more than expected in April.

 

The dollar drops

The U.S. dollar index fell by more than 0.70% on Friday.

The dollar shakes are the most important ones. Political drama happening in U.S. had affected the market during the week. It actually erased almost all the earnings brought by President Trump’s election. The economy is throwing a doubt on President Trumps ability to reform the policies. He promised to deliver the reforms on pro-growth economic agenda. Which is including deregulation in financial markets and the tax reform also.

 

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The deficit of zinc concentrate affecting China’s industry; it will increase refined zinc imports

Refined zinc imports

Starting with this month, China has the plans to increase refined zinc imports. As vanishing global supplies have a big impact on the local zinc outputs; they aim to cover the deficit by boosting the refined zinc imports.

Observing the China’s refined zinc production, in April it came to the lowest levels in more than 2 years. It happened due to the end up of some major mines in Australia. As well as in Ireland; This closure of important mines suffocated the China’s concentrate supplies. Which were of huge value for China’s industry.

 

Mining and heavy industry

Most noteworthy, the China’s ‘war on pollution’ also impacted the outputs in a way it restrained them firmly. Beijing is giving a huge efforts in mining and heavy industry; aiming to clear its environment, and pay attention to the ecological aspect of its production.

This will inspire customers for refined zinc to search their supplies overseas. It will likely lead to Boosting international prices, which this week leveled the lowest points since November.

“It is starting to bite.”

“The tightness is pretty much upon us.” said an analyst from ANZ Research.

“We are looking for zinc to push back to $2,800 in the second half … The zinc market is set to stay tight over the short to medium term. This certainly should provide a bit of a reality check for the bears.”

According to market data, and some analysts opinions, the zinc market price is to go up in forthcoming period (short to medium term), providing some kind of a reality check in markets.

Imports of refined zinc, from China’s guaranteed zones, could afterwards be resold on the local market for a profit. This week’s price leveled to $45; near the strongest since January 2016. In January 2016 the country shipped in around 60,000 tonnes of refined metal.

– China brought in just 25,600 tonnes in March and total imports are down by two thirds this year. (Reuters)

Most market participants have yet been turning to local exchange stocks. SHFE zinc stock fell for 50% since February. To the amount about 100,00 tonnes; which makes them the lowest since February 2015.

 

‘War’ on pollution

In the meantime, ‘war on pollution’ is slowly driving into its fourth year. The idea of the concept is to attenuate the environmental damage caused by periods of glowing & fast economic growth in China. Which will likely affect the production of base metals.

– “The Chinese government is going to put a lot of pressure (on metals producers) to reform from an environmental perspective,” said the head of metals at a China commodity trade house. (Reuters)

“Definitely we are going to see companies with limited domestic availability of concentrate. We should see some opportunities for imports of refined metal,” he said, declining to be identified as he was not authorized to speak with media.

In conclusion, it is important for Beijing to focus on its ”environmental health” and the clear blue skies, but these concepts are firmly going to impact the base metals production. And as well, the base metal prices, and global supply. The forthcoming period, short to medium term will definitely bring the higher global prices for zinc, as China also plans to boost the refined zinc imports.

The long term results will come themselves, it is the time who will show.

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May the 25th: OPEC is definitely extending Oil output cuts (forecast)

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Vienna, final decision:

 

May the 25th, and the meeting in Vienna, is crucial date for Oil market. The day when everything is going to be way more clear. Also the day when OPEC will again show that despite all the concerns and all the market fuss it still holds the power over Oil Market;

Presently, the numerous discussions are being led on this subject. Furthermore there are many predictions and different attitudes about the 25th’s outcome.

However, based on the numerous information and data coming straight out from current market events , it is very likely that the Oil cuts are going to prolong. They may even become deeper and that way impact the market forcefully.

 

Pre-meetings: Wednesday & Thursday

 

The OPEC’s officials, as well as the representatives of 13 league countries, along with OPEC’s Vienna secretariat held meetings on Wednesday and Thursday. Discussing the market, and agreeing on the forthcoming decisions.

Some OPEC sources are saying that the Meeting of Economic Commission Board will be concluded in Friday (today). Although it should have been finished yesterday.

“We have not agreed on final scenarios…”

 

Different sources:

 

There are sources which predict that OPEC’s extension will depend on estimated growth in supply from non-OPEC producers and U.S. oil outputs; but one thing is for sure, OPEC’s power over Oil market is still the strongest.

Even Saudi Arabia and Russia agreed that Further output cuts are desperately needed in order to keep market stabile. The extension will be for sure agreed until March 2018.

The final decision will be the outcome of Thursday, May the 25th when all the OPEC and non-OPEC Oil producers (allies) will together agree on prolonging the cuts in oil production.

Now the Oil prices which are trading at level of $53 a barrel, earned their support from reduced output due to high inventories.

Also the producers which are not the members of OPEC family, and those who are not participating in these cut deals; lowered their production and limited the drilling.

“Today’s meeting is just informative, nothing major…”

Reuters is reporting that by some of the OPEC sources, today’s meeting is only going to be informative. No final agreements will be brought. But it is definitely important for definitive decision which is about to come out on May the 25th.

“Brent crude was up 63 cents at $53.14 per barrel at 0813 GMT. After climbing to $53.20, its highest since April 21… U.S. benchmark crude was up 61 cents at $49.96 a barrel.” (Reuters)

 

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SHFE Friday’s morning trade: Copper prices

Economic Events:

  • Canada Core Consumer Price Index (CPI) MoM at actual 0.3%
  • Canada Core Retail Sales MoM came to actual -0.1% while forecast was -0.3%

 

SHFE Today

Observing the copper prices this morning, they were pretty stronger on SHFE. Asia morning trading on Friday May 19 was following positive Chinese economic data and a bounce in crude oil prices.

In the meantime, the three-month copper contract on the LME reached levels of $5 higher to $5,588 per tonne.

It is the strong sales data from China’s air conditioning sector, who has supported red metal prices this morning.

The bounce in crude oil prices has also raised sense across the commodities market, as OPEC members continued to re-affirm their commitment to a rollover in their production cut agreement.

But looking the copper price in forthcoming future; the Slowdown in Chinese housing market and political shakes in USA will definitely rise the curb in prices.

USA political crisis & China home prices

Threats from political crisis in the USA are real. It is probably going to delay US president DonaldTrump’s proposed infrastructure spending and tax cut plans. Which affects the base metals markets.

China’s growth of home prices cooled again in April. Followed by a brief up rise in March, as tougher market restrictions introduced by local governments took effect.

According to data released by China’s National Bureau of Statistics, prices climbed in 58 of the 70 mainland cities tracked by the bureau, down from 62 in March. (Metal Bulletin)

“The net long position of non-commercial traders on both the LME and Comex have been falling over the past few weeks and are now at levels last seen before the Trump trade rally started.” (ANZ Research)

 

 

Copper output in China: April data

Firstly, latest NBS data shows that China produced 724,000 tonnes of refined copper in April, which makes it up 5.5% year-on-year. Year-to-April production rose 7% year-on-year to 2.86 million tonnes.


Secondly, losses in the SHFE-LME copper arbitrage remained at over $100 per tonne on Thursday. Thirdly, copper stocks at LME warehouses rose 750 tonnes to 340,350 tonnes on Thursday. While deliverable copper stocks at SHFE warehouses slipped 874 tonnes to 71,420 tonnes.

 

Other Base Metals

Observing the SHFE July aluminium contract, it climbed 0.79% or 110 yuan to 14,040 yuan per tonne. While the July zinc price rose 0.35% or 75 yuan per tonne to 21,405 yuan per tonne. Continuing with june lead price which dipped 0.51% or 80 yuan per tonne to 15,455 yuan per tonne. Later, the SHFE September nickel contract was 530 yuan or 0.7% higher at 76,040 yuan per tonne.
September tin price moved up 590 yuan or 0.41% to 144,550 yuan per tonne.


Currencies & data  

The Brent crude oil spot price rose $0.38 to $52.90 per barrel. The Texas light sweet crude oil spot price gained $0.39 to $49.77 per barrel.
Shanghai Composite index stood at 3,090.59 recently, up 0.01. The dollar index edged 0.04% lower to 97.81 as of 04:53 BST on Friday.

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Saturday: Donald Trump’s Visit to Saudi Arabia; Ryadh CEO forum

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Firstly, Donald Trump is visiting Saudi Arabia this Saturday. The Saudi Aramco is going to conclude deals with 12 United State’s companies during this visit.

Secondly, Saudi Aramco plans to push and develop the local workers and manufacturing in all the possible ways. According to sources, this is part of Saudi Aramco’s plan to develop their operations in different areas. They plan to make deals with Oil companies, etc. Schlumberger, Halliburton, Baker Hughes, and Weatherford.

Thirdly, amid these plans, Aramco also intends to conclude agreements with other important companies, among others even: General Electric, National Oilwell Varco, Nabors Industries and Rowan Companies.

Fourthly, Reuters reported that when trying to reach Aramco and ask them about this subject; no one was available to comment.

 

Aramco’s plans dating from 2015

 

Following, IKTVA programme was launched in 2015 by Saudi Aramco. The idea of this programme was to double the amount of ”local produced energy related” and all similar goods to 70%. The year for this aim was 2021.

Furthermore, observing the past periods, Aramco cooperated with U.S management companies. They were covering the important projects which collided U.S. management and Aramco operating parts. The aim was to upgrade the Oil potential and develop the oil businesses in country.

“The upcoming partnerships will boost bilateral investment towards localisation.” (Reuters)

 

IKTVA closer

Aramco signed deals with drilling firms Rowan and Nabors Industries to establish joint ventures under the In-Kingdom Total Value Add programme. This happened last year, due to Aramco’s idea to develop this programme at the high levels.

IKTVA  is going to help in developing 500,000 jobs for Saudis. Both directly and indirectly, connected to the everyday operations.  

In forthcoming period Saudi Arabia is planning to change structure of its economy, in a way. It wants to diversify the economy, and widen its spectre aiming not to rely only on oil exports. Aramco will mainly participate in these massive projects. It is a main part of Vision 2030 economic reform drive.

The Engineering companies who support Aramco will sign these agreements too. Some of which are: KBR and Jacobs Engineering, as well as McDermott and Honeywell.

 

Saudi-U.S. CEO forum

This Saturday in Riyadh, the main event which is taking place is an inaugural Saudi-U.S. CEO forum. Most noteworthy, several important deals will be signed. Covering the areas of: defence, electricity, oil and gas, industrial and chemical sectors.

The new documents, in form of licences will be signed; giving the U.S. companies rights to operate in Kingdom, and that way have their power diversified on bigger theritory. And at the same time, giving them the power to influence Saudi’s energy market.

 

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Vessels with U.S. Oil en voyage to Asia; as OPEC measures extending cuts

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TOP 5 events in Today’s Market:

  • More Trump drama as White House turmoil deepens
  • Dollar struggles to recover from worst day in almost a year
  • Global stocks extend slump amid Trump jitters
  • Oil slides as investors weigh U.S. drilling, extended OPEC cuts
  • British pound rises above $1.30 for first time in 8 months

For further info on these subjects: www.investing.com

 

Cargoes:

According to current news, nearly 8 tankers are now en voyage from the U.S. to Asia. The one of them is carrying a cargo of Southern Green Canyon oil. Which japanese refiner Cosmo Energy bought. The other carries Alaskan North Slope cargo which is expected to come to Asia in about eight months.

The United States drillers are using the favorable prices to sell their Oil and that way they are strongly affecting the market. It is making OPEC less powerful to impact the global Oil market. The next week is crucial for Oil prices and movements in Oil market, because OPEC is going to meet in Vienna on May the 25th.

The market members, and all the OPEC allies are trying to leave the oil output at a current level, but the U.S. drilling is constantly affecting all the market happenings. Their ”relatively cheap” prices have buoyed exports going to Asia.

 

The forecasts for further U.S. Oil output:

U.S. Oil is expected to gain a quantity of 1000000 bpd, with most of it going straight to Asia. U.S. crude oil exports already came to a level of 1.09 million bpd. Observing the recent drilling (period of past few months) those are the levels highest on record according to U.S. government data. In case these amounts remain elevated, it can happen that they come over the 1.2 million bpd. 1.2 million was the February’s amount.

“We expect that momentum to continue when Dakota Access Pipeline opens, and as more Permian production hits Corpus Christi docks.”  (Sandy Fielden, director of oil and products research at Morningstar said) (Reuters)

Based on EIA info, United States Oil production rose for 10%. Which shows that levels of 9.3 million bpd are serious levels, and that if the production goes further, OPEC’s role in the global market will be really questioned.

 

Tempting Arbitrage:

Wednesday(17.05.) was the day when U.S. crude touched a 6-week high. It Immediately affected the traffic going to Asia; It shows as an possible extension of U.S. exports finding their way to Asian customers.

– “Early May spot prices showed both Brent and Dubai trading at around a $3 per barrel premium to Brent and WTI Cushing, which is an open window,” said Fielden. (Reuters)

Bahamas-flagged Suezmax is carrying Alaskan North Slope crude oil to Asia. This is based on the Vessel tracking data. Half of this crude is sold, half is unsold. (Reuters)

In the meantime, the Cosmo Energy has an Aframax vessel Almi Star with 300,000 barrels of Southern Green Canyon crude and Domestic Sweet Blend outside of Houston. Later it is picking up for further 300,000 barrels of Maya crude at Dos Bocas, Mexico.

This ship will go through the Panama Canal. Afterwards it will transfer crude to a larger Suezmax vessel loaded with 400,000 barrels of Mexican Maya crude for a voyage to Asia.

When asked to comment on this subject, The Suezmax P66 refused to comment.  Actually they did not answer the e-mail on this, while the Cosmo Energy refused to comment.

 

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Industrial Metals in China

Industrial metals complex

There is so much difference in individual metals. Observing the supply data, it is actually the demand side of the fundamental ledger that has dulled the metals’ shine.

The most interesting part is that China is impacting the whole market with its ”metal operations.”

As the last year metals were caught out by the firm policy of stimulus last year, they were having a nice back up. Now, industrial metals are reacting really negative to Beijing’s shift to policy constriction.

Watching the market analysts and their comments, it appears that China came from metallic buy to metallic sell.

 

The real question is, are they wrong?

 

China’s Selling

Firstly, at the beginning of process, The first commodity which sent signals about the change of stance in China’s policies was definitely Iron Ore.

Same time last year, the Dalian contract heralded a new stimulus: infrastructure and property grows and nice trends in recovery of these. Now, the current slide in its growth has indicated that the Chinese policy cycle maybe started again.

”It’s noticeable that volumes and open interest have picked up as Dalian iron ore has fallen, suggesting it is being used to express a negative view on China’s immediate growth prospects.”

”Speculative money has been steadily leaving the market over the recent weeks with money manager net length sliding pretty much across the board since late February.” (Andy Home)

Surely, nickel had the worst hit. Aluminum was the least affected, reflecting the former’s overwhelmingly negative and the latter’s more positive supply picture.

LME broker Marex Spectron’s alternative explanation is that money men are net short on zinc, nickel and tin. They are neutral on lead, and marginally long on copper.

Aluminum is the only one showing a sizeable net long. And even that is much reduced relative to earlier this year.

 

A change of the cycle

Secondly, seems like the metal markets are actually ”dancing on” a pre-written script.

Observing  the London LME Week last October: Back then, everyone was short-term bullish but medium-term wary on China.

That time, there existed a thought and agreement amid consensus, that the Beijing stimulus package will impact the second quarter of 2017. Causing a slowdown in most important metals, who are main important parts of the Chinese economy.

The fears of past now seem to have a very good sense.

Beijing aims to force banks to clean their data, and adjust their balance-sheets. This stimulus given by a government was meant to inspire the events of calculating the good position of  Beijing’s financial institutions and banking system.

But as a result, industrial production and fixed asset investment growth happen to have slowed down meaningfully.

Both official and unofficial purchasing managers indices are falling down, suggesting that manufacturing activity has recently topped out.

And China’s metallic imports are oscillating at subdued levels. Observing the copper imports, they fell down by almost 28 percent y-o-y in the first quarter.

People were expecting all of this actually,

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