Short report on Base Metals Trade Today

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Speaking about base metal market on September 4.. We see copper up for +0.9%, nickel +0.9% and tin 0.2%. All the prices pushing higher.

On the other hand, the rest are weaker. Or little changed with aluminium off 0.8%, zinc off 0.5% and lead flat.

After Friday, Today’s volume of trade is high, with 14,593 lots traded as of 07:15 BST.


Precious Metals

Precious metal prices are up 0.9% on average this morning. Together with spot gold prices up 0.9% at $1,337.23 per oz. Silver and the PGMs up by similar percentages.

This follows a strong day on Friday, especially for palladium where prices rallied 4.8% to $980 per oz. While gold prices closed up 0.3%, silver and platinum closed up 0.8%.



In Shanghai Futures Exchange today the base metals are for the most part stronger. Going with average gains of 1%. Copper prices up 0.8% at 53,150 yuan ($8,120) per tonne. Most noteworthy, nickel prices are the strongest. They are up 2.9%, while lead prices are up 1.7% and zinc up 1.2%. On the other hand, tin prices are little changed and aluminium prices are off 0.6%.


“Spot copper prices in Changjiang are up 1% at 52,900-53,230 yuan per tonne and the London/Shanghai copper arb ratio is weaker at 7.69 (7.74).” (Fast Markets)

Steel rebar prices on the SHFE are up 2.4%, while gold and silver prices are up by 0.7% and 1.3% respectively. Iron ore prices for January delivery are off 0.7% at 573.50 yuan per tonne on the Dalian Commodity Exchange.


Speaking about the international markets, spot Brent crude oil prices are off 0.9% at $52.29 per barrel.

And the yield on US ten-year treasuries has climbed to 2.17%, while the German ten-year bund yield is little changed at 0.36%. (Fast Markets)
The Chinese yuan is currently at 6.5447. Which is at its strongest since June last year.  This suggests confidence in the economy. Most of the other emerging market currencies we follow are firm, suggesting little risk-off appetite.

Aluminium, Zinc, Copper and nickel prices are trading at really high levels, in comparison with previous months. Tin and lead prices are lagging behind, but the volume is at high level in global.

Having geopolitical events in mind, there may be some diversification going on amongst investors. Trading is likely to get intensive as higher prices attract profit-taking.