Base metals on LME edge higher today

Main events in today’s market:

• Oil volatile on expectations of OPEC’s final decision
• Rate hike odds drop after Fed signals gradual tightening
• Global stocks move higher after Fed minutes, OPEC in focus
• K. economic growth revised lower in first quarter
• Bitcoin rally keeps going; tops $2,600

For further info on these subjects, visit: http://www.investing.com

LME Morning trade

In comparison with yesterday, LME base metal prices went up in today’s morning trade. Those were the slight improvements in prices after yesterday’s weakness.

Yesterday, LME Prices closed down an average of 0.7%. It happened mainly due to Moody’s downgrade of its rating on China. Nickel survived the strongest hit with a 2.4% drop. However later it has marginally recovered, right this morning, trading $45 per tonne higher.
Nevertheless yesterday’s slight lift in dollar price, it has again fallen. And it is currently trading at 96.91. The lower dollar prices are giving back up to the base metal prices.

Most noteworthy, the US Federal Open Market Committee’s (FOMC) May meeting minutes are currently showing some uncertainty over the outlook for US rate increases after June.

“As always, China sentiment this afternoon remains key but assuming that there isn’t [a] complete meltdown. I feel the macro tone will see some demand creep into the base complex on the open of Europe with some key resistance within reach on many metals here just above current levels.”  (Matt France at Marex Spectron.)

Copper, aluminium and tin retrieved upwards momentum. Later, the lead was little changed at $2,077 per tonne. The only anomaly was a minor decline in zinc as it slipped $4 lower this morning.

Copper price stabile

Observing the LME three-month copper price, it was up $16 to $5,898 per tonne. Later the concerns over Chinese copper demand have gained higher levels once more, following a 30% slump in the country’s red metal imports. It happened during the first four months of the year.

China imported 202,626 tonnes of refined copper in April. China April imports saw a decrease 40.7% year-on-year. Observing copper trade and production, the Grasberg mine workers are planning a strike for a month longer. Extending it until July this year. Copper stocks fell a net 4,100 tonnes to 321,575 tonnes.

Base metals up

Regarding the three-month aluminium price, it rose $11.50 this morning to $1,956.50 per tonne. In terms of stocks, they continued to tumble. Falling a further 9,475 tonnes to 1,470,550 tonnes. Nickel gained some strength after yesterday’s $245 per tonne dive, it was up $45 to $9,145 per tonne. Stocks fell 954 tonnes to 383,844 tonnes.

Observing the zinc prices, they dethroned the trend with a $4 decline; it is currently trading at $2,631 per tonne. Stocks fell 1,525 tonnes to 335,875 tonnes. Lead’s three-month price was little changed. Going up just $1 per tonne to $2,077. Stocks were down 100 tonnes to 183,400 tonnes. The three-month tin price gained $90 to trade at $20,465 per tonne. Stocks were unchanged at 2,060 tonnes.