Elliott pressures BHP to get rid of its petroleum business

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Petroleum business

Today, Elliott Management increased the pressure for strategic changes at BHP. It is asking for a detached review of the mining giant’s petroleum business.

Elliott, as important investor, has built up a 4.1 percent stake in BHP’s UK-listed arm. It is now urging changes, cause it needs to boost up shareholder value. They consider that there are clear signs the market will be receptive to a new strategy for BHP.

“There is extremely broad and deep-rooted support for pro-active steps to be taken by management. To achieve an optimal value outcome for BHP’s petroleum business following a formal open review.” (Reuters)

 

Changing the structure

Firstly, Elliott is pushing for BHP to break down its dual-listed structure. Secondly, it asked BHP to spin off its U.S. oil and gas assets, and boost returns to shareholders. It gave the tasks to BHP at April 10th – BHP rejected all of them.

They sent the latest letter just hours before BHP CEO Andrew Mackenzie was supposed to speak at a Bank of America Merrill Lynch mining conference. Which was happening in Barcelona, and was being attended by Elliott.

“This latest move by Elliott is well-timed to coincide with Mackenzie’s speech. It almost forces BHP to directly address them on this.” Said an analyst

BHP was disappointed because Elliott presumed the company was not open to suggestions. And that it had been deceiving in its response to the New York-based investor’s calls for a change in strategy.

“We reject both claims.” BHP said.

BHP expected to meet with Elliott in Barcelona.

“The current period of shareholder activism could result in a break-up and/or a significant alteration of the company’s structure.” (Citi bank)

 

Listing Shift

Responding to concerns raised by the Australian government, Elliott on Tuesday backtracked on its proposal for BHP to have its main listing in London. Explaining that it could remain incorporated in Australia and stay an Australian tax resident, retaining full listings on the Australian and London bourses.

BHP has said the costs of scrapping its dual-listed structure significantly outweigh the benefits.

 

BHP buybacks

Elliott also criticized BHP’s track record on share buybacks and suggested the company make a $6 billion buyback in 2018.

If the current valuation remains at the same level, this would lead to $2.4 billion in value accretion. Which is equivalent to more than 12 times Elliott’s expected costs of unifying BHP’s dual listings.

Elliott estimated this cost of unification at $200 million.  In addition it said BHP’s $1.3 billion estimated cost was overpriced.

Mackenzie already emphasized before that it is the wrong time for BHP to sell its U.S. petroleum assets. The oil prices are low,  still somewhere near $52 per barrel.

In conclusion, BHP has also searched to highlight the action it is taking to divest non-core parts of its U.S. shale assets.

 

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ArcelorMittal or IIG? Bosnian iron ore mine for sale

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Bosnian Iron ore mine for sale

The largest steel producer in the world, ArcelorMittal has said to Bosnia’s officials it will take legal action, to protect its ownership rights. If they decide to sell government-owned stake in the Ljubija iron ore to the opposite buyer.

ArcelorMittal owns a steel plant in Zenica. Which is located in central Bosnia. There it processes iron ore from the mines it owns in Prijedor in the north of the country.

Then, it also owns 35.1 percent in the Ljubija iron ore mine. Government of Bosnia’s autonomous Serb Republic has a 64.9 percent stake in this mine. And it is put up for sale.

The ArcelorMittal has offered to buy out the government’s stake in the Ljubija mine. Meanwhile the government already decided to sell it to rival customer. Israeli Investment Group (IIG). Explaining that the IGG proposed higher price and  also promised bigger investment.

 

 

The decision

Parliament will bring final decision about the sale on Tuesday. Still it is not comprehensive if they will have the major backup.

Lakshmi Mittal, ArcelorMittal CEO has consigned a letter to the Serb Republic government. There he “emphasized the very serious negative impacts for jobs and the economies of both Prijedor and Zenica.” Which will happen if they confirm the offered sale of the Ljubija mine stake to IIG.

“The letter also gave notice of our intention to protect our contractual rights by all means possible, if necessary through legal action in the appropriate international courts.” (Reuters)

When asked about this, Milorad Dodik said that he hadn’t yet received the letter and refused to comment. IIG also, wasn’t available for comments on this matter.

Dodik is The President of Serb Republic in Bosnia who supports the sale to the Israeli group.

 

Arcelor Mittal workers

 

AM Prijedor employs 850 workers. It has invested 117 million Bosnian marka ($65 million) in the mines over the past 12 years. Its steel plant Zenica employs about 2,400 workers.

Biju Nair, ArcelorMittal Zenica’s CEO stated that if they sell Ljubija mine to a rival bidder,  Zenica plant would switch to a different production system. And that wouldn’t be convenient for the iron ore from Ljubija. It could also lead to job losses at both Prijedor and Zenica.

“A new owner could threaten the supply of iron ore from Prijedor at commercially acceptable prices. If so, we can change to production without iron ore, using the Electric Arc Furnace.” (Reuters)

Opposition parties in Bosnia, as well as ArcelorMittal Prijedor trade unions, are against the sale to the IIG.

Protests in Prijedor & the budget deficit

Today, police in Prijedor interdicted AM workers protests against the sale to the IIG. They already protested last week in Banja Luka.  When the parliament was discussing the decision on the sale.

The regional government wants to go ahead with sale, cause it has a huge budget deficit. And the IMF stopped its cash payouts to Bosnia. Because of the reform delays.

“Israeli-Russian-Kazak-African investment group” offered 92 million Bosnian marka for the mine, and promised a 65 million marka investment over the next couple years.

ArcelorMittal has offered 63.6 million marka and investment of 63 million marka over the next 10 years.

 

 

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Oil price rises to $52; Russia & Saudi Arabia discussed the outputs in Beijing

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Oil price today reached the level of $52 a barrel. Due to Russia and Saudi Arabia’s agreement on cuts. They almost definitely consider that the Supply cuts have to extend into 2018, in order to achieve the rebalance of Oil market. And to keep the OPEC-lead deal, which is crucial for the benefits of all producing countries.

In a meeting today, Khalid A. Al-Falih, and Alexander Novak agreed that supply cuts need to extend to the period of next nine months. Until march 2018, which is more than the previous 6 months considered.

 

The price & Beijing meeting

Brent crude rose $1.20 to $52.04 a barrel by 0847 GMT (4.47 a.m. ET) and traded intraday at $52.26, the highest since April 26.

U.S. crude was up $1.18 at $49.02 a barrel.

Oil obtained back up from this supply deal. Still, inventories remain high and output from other producers such as the United States is rising. Affecting global prices and keeping them below the $60. Saudi Arabia will definitely like to see prices above $60.

Beijing, May 15: “There has been a marked reduction to the inventories, but we’re not where we want to be in reaching the five-year average.” (Khalid al-Falih)

“We’ve come to the conclusion that the agreement needs to be extended.”(Novak)

As said many times before, OPEC agreed in 2016, on cutting the outputs for 1.8 million bpd.

The two ministers today in Beijing said they were hoping that the other producing-countries will join the cuts. So they could build a global volume terms as before.

 

Newspaper comments on the Beijing meeting & its subject:

 

Market participants, oil traders and all the other analysts, were a bit stunned by the strong sound of the announcement.

“It is certainly a strong statement to include already 2018, while it may also be aimed at improving the chances of keeping other participants on side when it comes to the next round of talks in 10 days.” (JBC Energy)

The most important meeting of all the producing countries will take part on May the 25th in Vienna. OPEC and some non-OPEC producers will agree on whether to further cut the production. OPEC invited 2 countries which are not included in recent deals, to join the meeting. Those are the two small producers, Turkmenistan and Egypt.

 

 

United States

Still, besides all the agreements and producing OPEC allies, there always exists a problem amid these deals. The U.S. drillers, non-stopping their huge outputs, are affecting the global supply (oversupply) and having a big impact on prices.

They  added oil rigs for a 17th week in a row. Expanding a 12-month drilling recovery, and making a fuss with their impacts on global market.

 

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SHFE morning trade: Copper up due to Lower production in Chile

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Main Economic Events Today:

  • China Industrial Production y-o-y fell to actual 6.5%, while expected was 7.1%
  • United Kingdom Prime Minister Theresa May Speaks

This Week:

  • Empire State, Philly Fed Manufacturing for May
  • April China Industrial Production
  • Euro Zone Q1 GDP – Revised Reading
  • K. April CPI, Employment & Retail Sales
  • Japan Preliminary First Quarter GDP

 

Shanghai Futures Exchange

Firstly, copper prices on the SHFE recovered during morning trading on May 15. Due to the news that China had announced more funding for its One Belt One Road initiative. Copper price was as well impacted by reports of lower production in Chile.

The most-traded July copper contract on the SHFE rose 210 yuan per tonne to 45,240 yuan per tonne as of 10:59am Shanghai time.

Secondly, Chinese president Xi Jinping said One Belt One Road plan aims to connect China with Europe, Asia and Africa through various infrastructure projects.

 “The Belt and Road initiative, which was first proposed in 2013, offers the world’s second largest economy a chance to consolidate its political presence in the region. Additionally, the initiative provides China’s battered commodity intensive sectors, many of which are struggling to contain overcapacity, a lifeline to remain relevant for years to come.” (CBA Commodities)

“China has already committed $50 billion to date and that could grow exponentially in the next 5 years. The initiative, which could cost over $1 trillion, is clearly positive for commodity consumption. We note that construction will take place over decades. Realistically gather momentum in the 2020s and will inevitably face roadblocks from political interests of the 60 countries involved.”  (Metal Bulletin)

Thirdly, Cochico announced that copper production in Chile in 1H17 was down 14.6% year-on-year to 1.19 million tonnes, due to the strikes occurring during the period.

LME’s three-month copper contract was up $13 per tonne to $5,581 per tonne as of 03:55am London time.

SHFE, LME copper stocks fall 

Observing the open interest of the July copper contract, it was at around 219,134 position on Monday morning. Following, losses in the SHFE-LME arbitrage held at around $80 per tonne last week. Demand is keeping healthy levels due to the peak season. 
Also, deliverable copper stocks at SHFE-approved warehouses fell 20,238 tonnes or 9.4% week-on-week to 194,993 tonnes as of Friday May 12.
In the meantime, LME copper stocks fell by 7,350 tonnes to 329,375 tonnes on May 12.

Base metals broadly lower; Aluminium bit higher 

Fourthly, the SHFE July aluminium price rose 1.05% or 145 yuan to 13,975 yuan per tonne. Following, SHFE July zinc price dipped 0.09% or 25 yuan to 21,590 yuan per tonne.
Observing the July lead price, it slipped 1.05% or 170 to 15,965 yuan per tonne.
In conclusion, the SHFE September nickel price was 180 yuan or 0.23% lower at 76,830 yuan per tonne. And finishing with the SHFE September tin price who fell 1,240 yuan or 0.87% to 140,990 yuan per tonne. 


Currencies & data

 
The Brent crude oil spot price up 0.85 to $51.62 per barrel. Texas light sweet crude oil spot price also gained 0.79 to $48.59 per barrel.
Observing the Shanghai Composite, it was up 0.36% to 3.094.53. Most noteworthy, US Empire State Manufacturing Index and NAHB Housing Market Index will be released later today. The dollar index decreased 0.01% on Monday morning to 99.19.

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The upcoming week: Crude Oil Futures

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Short Recollection of last week

 

Beginning by observing the Oil futures; they settled on nearly plane levels on Friday. But still registered the first weekly gain in a month. Inspired by the news that key crude producers will extend output cuts to the period after June;

Firstly, on Thursday, U.S. West Texas Intermediate crude came to the highest since May 3 at $48.22.

Secondly, the U.S. benchmark went up for $1.62, or around 3.4%, after posting three consecutive weekly declines.

Noteworthy, in London Futures Exchange, Brent oil for July delivery added on 7 cents. Later coming to settle at $50.84 a barrel by closing. The global benchmark hit $51.16 a day before. This level was not seen since May 2.

Thirdly, observing the weekly movement, London-traded Brent futures recorded a gain of $1.74, or nearly 3.5%.

 

OPEC & non-OPEC

OPEC and non-OPEC oil producing countries  are discussing the extension of a global supply cuts.

Recently, some officials have suggested the possibility of further & deeper production cuts to help clear a supply glut & rebalance the market completely.

Starting this week, crude sank to a five-month low. Loped by concern over increasing U.S. crude output that has shaken investors’ faith in the ability of OPEC to rebalance the market.

Fourthly, data from energy services company Baker Hughes showed on Friday that U.S. drillers last week added rigs for the 17th week in a row. Indicating that further gains in their production are ahead.

 

The further U.S. drilling

The U.S. rig count rose by 9 to 712, extending an 11-month drilling recovery to the highest level since August 2015.

Observing natural gas futures for June delivery, they rose 4.8 cents. Which makes it the highest level since January 26 at $3.424 per million. British thermal units, up 1.4% for the session and about 4.9% higher for the week.

All the participants in the market race will see recent weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday.  To groove the strength of demand in the world’s largest oil consumer.

 

Meanwhile, investors will keep an eye out for a monthly report from the IEA for further evidence that global producers are complying with an agreement to reduce output this year.

 

Inspired by Investing.com; here are some important next week’s events which will likely have impact on market & commodity trades:

 

Tuesday, May 16

The IEA is going to publish its monthly evaluation of oil markets.

Later in the session the API will publish its weekly report about U.S. oil supplies.

 

Wednesday, May 17

The U.S. Energy Information Administration is to release weekly data on oil and gasoline reserves.

 

Thursday, May 18

 

United States government will give a weekly report about Gas supplies reserves.

 

Friday, May 19

Baker Hughes operates in more than 90 countries, giving the oil and gas industry  info with services for oil drilling, formation evaluation, completion, production and reservoir consulting. It will release weekly data on the U.S. oil rig count in Friday.

 

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Russian exports; Gas and Oil production

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Russia expects balance in Oil market; in case production cut prolongs

 

Alexander Novak said Global Oil markets will come to a balance soon. If the production cuts extend till the early 2018; or late 2017. Entering the winter of 2018, a supply-demand will find its equilibrium.

“Judging from the current dynamics in the decline of the oil and oil products inventories, the markets will see such decline in inventories by the end of 2017 – early 2018. Which will lead to cuts in inventories to a five-year average.” (Reuters)

Despite currently cutting the production, global inventories are still high. They lead the crude back below $50 per barrel. Those were the oscillations earlier this month and it is constantly putting pressure on OPEC to extend the cuts to the rest of the year.

Russia’s Energy Minister Novak said that OPEC countries and other leading oil producers would discuss extending the deal. Considering the second half of the year or “maybe even further than that”.

Parameters of the agreement should not be changed. In a way that further cuts are very likely.

Novak added that Russia will  retain output cuts of 300,000 barrels per day. From the level of October 2016 as stipulated by the December 2016 deal.

”Russia’s oil output forecast of 549-551 million tonnes for this year remained the same. But it could change depending on the outcome of oil producer nation talks in Vienna later this month.”

 

Russian Natural Gas Exports to China

 

Alexei Miller today said Gazprom hopes to agree the main terms of natural gas exports to China from the Russian Far East, in 2H17.

The supplies of natural gas, coming from the Russian Far East should be an extension of an already signed 30-year contract on exporting. 38 billion cubic meters of natural gas going to China, from Siberian deposits.

 

OPEC losing its pricing power?

 

According to some CNBC news, Commerzbank said that OPEC is losing its power over market. It has limited impact on Oil prices, since it secured a deal to curb outputs. The global energy market is well shaken, and it is a big question whether OPEC will succeed to rebalance it in 2H17.

“The fairly short-lived effect of production cuts on oil prices shows that OPEC’s market impact via ‘supply control’ is very limited. We have been pointing out for years that OPEC has lost its ‘pricing power.” (Commerzbank)

“Even so, OPEC is unlikely to give away on cut extensions, it will extend the agreement instead.” Weinberg said.

Eugen Weinberg is a head of commodities research at Commerzbank.

“The relentless increase in U.S. shale supply has counterbalanced the production cuts that OPEC and Russia agreed on. And so, there is still a skepticism within supply and demand balance.” (CNBC)

 

 

 

 

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Oil Production; Summary of Main Oil News this week

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Russian energy ministry and output cut talks

The main official of Rosneft, Igor Sechin, said on Saturday that the Russian energy ministry had his backup in discussions over oil production cuts.

“The most important thing is to have a mechanism to defend our interests.”

In previous months, Sechin has expressed some suspicions about the ability of the OPEC. And its power to influence oil markets amid a shale oil production boom in the United States.

The countries: Oil producers, including OPEC and non-OPEC; agreed to cut output for 1.8 a day. This decision dates from last year, and will be active till June the 30th. It aims to reduce global oil inventories.

The Oil producing countries will meet later this month in Vienna, to discuss a possible extension of the deal.

 

Georgia nuclear plant construction (Southern Co)

Georgia Power and Westinghouse decided to transfer the Project management of Georgia nuclear power plant expansion, to Southern Co.

 

The temporary agreement until June 3 will allow construction of the plant expansion to continue.

Westinghouse Electric Co filed for bankruptcy in March, was hit by billions of dollars of cost overruns. At four nuclear reactors under construction, including at the Georgia project and another in South Carolina.

The Georgia project is owned by a group of utilities led by Southern Co.

Gasoline in India

Firstly, the gasoline consumption growth has been slowing since the middle of 2016, after rising for the previous two years.

Secondly, observing the last 9 months we see that consumption growth for most other fuels used for cooking and transportation is also slowing down.

 

Based on the current data, demand for liquefied petroleum gas and kerosene used for cooking, heating and lighting as well as diesel used for transport; all show signs of leveling off or falling in the first four months of 2017.

These trends maybe come from the demonetisation of large-denomination bank notes in India. They were announced at the start of November as part of the government’s anti-corruption campaign.

 

Crude Oil prices Impact:

 

Rising crude oil and refined fuel prices over the last year are also likely to have constrained the growth in consumption and other fuels.

Observing the retail gasoline prices, we note that they rose by around 10 percent between January 2016 and January 2017. While diesel prices climbed by almost 8 percent. (Ministry of Petroleum and Natural Gas)india

India’s middle class is pretty sensitive to increases in prices & costs, so they are curbing a demand for Oil. Their middle class, urban as well as rural, is emerging very fast.

Nevertheless the recent slowdown in consumption growth for gasoline and other fuels, it is too early to determine if the deceleration is temporary linked to demonetization and price rises or something more lasting.

India as a source of oil demand:

Noteworthy, India has been one of the most important sources of oil demand growth during the cuts. So any extended slowdown in consumption growth, would make the mission of global market harder. The rebalancing will be way more complicated.

 

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Nigeria: Exxon Mobil Oil workers started a strike, dissatisfied by work conditions

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Summary of Today’s Important Economic News:

 

  • Retail sales set to recover in second quarter
  • Fed will keep eye on inflation data
  • Global stock mixed ahead of key U.S. data
  • Oil in track for weekly gains of 3%
  • S. – China trade relations ‘hitting a new high’
  • Gold prices move higher amid U.S. political turmoil

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

Nigeria Exxon Oil : Bad working conditions

The Exxon Mobil Corporation workers in Nigeria started a strike. Being dissatisfied with the current working conditions, and the way they are treated in their daily operations. The idea of starting the strike came from these bad handling of everyday operating routines.

 

Firstly, the Labor union of Nigeria gave so many critics to Nigerian Oil companies. Because of their rude behavior on workers. The use of workers in such disrespectful way lead not only to one, but to a number of strikes in last few months.

“Members of the union started strikes in December, when 150 workers were sacked from their work.”

The chairman of the Lagos zone of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Abel Agarin, said his workers protested for the first time in December. They were hurt by the news that numbers of their cooperates lost jobs. He said 82 of these sacked individuals were PENGASSAN’s workers.

“We want to bring them back to work, and if that is not possible we want a proper severance package for them.” said Agarin

He also led around 50 protesters in the commercial capital, supporting their ideas.

Places where previous strikes took place

PENGASSAN said strikes took place in a few cities and Nigeria states including:  Lagos, Bonny, Akwa Ibom and Port Harcourt.

There weren’t any impacts on Oil production. Strikes are not affecting the real oil output. Said a Exxon Mobile representative.

“It is still to early to say if strikes will affect the Nigerian Oil production. As time goes by, there will probably be some real consequences. “

Regarding a period of late 2016, and strikes which took place then, we can see that the previous strikes did actually impact the outputs. Not only they affected the output, but they also lead to weeks-long shipping delays. Causing the delayed trade.

 

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LME: Friday base metal prices

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Today’s trade was broadly higher for all the base metal prices. The prices saw a little, but positive movement. Yesterday, prices were following a certain rally during the day, but they dipped just before the close.

Copper is currently trading at $5,560 per tonne. It hit highs of over $5,600 per tonne yesterday afternoon, but fell down at the end of a day.

Speaking about the three-month nickel price, it is starting to recover from last week’s falls. It was trading up at $9,355 per tonne this morning.

Regarding Tin prices, they saw a small decline. All  the other base metals recorded minimal price increases.

Copper price aiming higher

Copper is the most ”popular” over all the base metals currently. Firstly the 3-month copper price was up $17 at $5,560 per tonne.
Copper Stocks fell by 7,350 to 329,375 tonnes.
BHP Billiton is continuing the negotiations for possible sale of Cerro Colorado copper mine in Chile.

“We still see uncertainties over whether domestic consumption will support the decline of inventories, and whether the peak consumption season will turn out to be bullish.” (Metal Bulletin)

China’s deleveraging has had great impact on Market enthusiasm. As well as the optimistic trends.

Base metals increase; decline for tin

Firstly, observing the three-month aluminium price, it was up $12 to $1,887 per tonne. Aluminium stocks were down 8,650 tonnes to 1,556,150.
Secondly, the three-month nickel price is trading at $9,355 per tonne. It is calculated the increase of $45. Following, nickel stocks increased for the fourth day in a row, rising 1,224 tonnes to 380,610 tonnes.

Thirdly, zinc price increased $15 per tonne. It is now trading at $2,606 per tonne. Stocks increased 2,050 tonnes to 345,150. Zinc stocks have risen 10,550 tonnes over the last four days.

The three-month lead price rose $4 to $2,181 per tonne. Stocks rose 350 tonnes to 183,150 tonnes.  Tin was the only base metal to see a decline; the three-month price fell $15 to $19,850 per tonne.

Stocks for tin fell 20 tonnes to 2,310 tonnes after two days unchanged.

Currencies & data

Observing the the dollar index, it was unchanged at 99.64.  The Brent crude oil spot price was down 0.40% to $50.61 per barrel.
In equities, the UK FSTE 100 was up 18.07 to 7404.7. The latest data shows that US PPI data was stronger than expected. At 0.5% month-on-month in April against market expectations of 0.2%.


There is a host of US data out today including CPI, retail sales and preliminary University of Michigan consumer sentiment and inflation expectations, while the EU has monthly industrial production data due.

 

LME Asia week; Hong Kong

 

As this year’s LME Asia Week 2017 draws to a close, reporters and editors who were in Hong Kong during this week round up the key themes and topics discussed at the fifth annual event. Metal Bulletin reported about 10 main topics that were discussed in Hong Kong. They wrote about comments, ideas and CEO’s discussions that happened there, and gave a nice brief summary on this closing.

Visit http://www.metalbulletin.com for further info.

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Friday, May 12th on SHFE

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Amid onsets of profit-taking, and a generally bearish sentiment towards demand for the red metal, copper prices on SHFE felt back during Today’s morning trade.

Some traders say:

“Market players took profits after Thursday’s rally, and there is no further stimulus supporting the red metal.”

“The retreat of the whole base metals complex was mainly due to the bearish outlook for the market – weakened consumption and moderate macroeconomics.”

Copper prices movement

 

Firstly, LME copper stocks fell by 2,475 tons to 336,725 tons on Thursday.  It is the fourth running decline within LME-sheds this week. Secondly, SHFE copper prices were lifted on Thursday by reports that the People’s Bank of China is going to release funding on Friday. Which will ease market concerns of tightened Chinese credit.
“PBoC’s attempt to ease short term credit conditions boosted a wave of short-covering, however, the red metal sees limited space to move up further.”
“We still see uncertainties over whether domestic consumption will support the decline of inventories, and whether the peak consumption season will turn out to be bullish.”

“Recent supply disruptions at copper mines were not felt in metal production earlier in the year due to the large supply of copper scrap and seasonally weak demand in the first quarter of the year.” David Lilley (Reuters)
Thirdly, deleveraging in China has adversely affected “enthusiasm and optimism” in the market.  BHP Billiton has started the preparations for a potential sale of its Cerro Colorado copper mine in Chile.

Other base metals

Observing base metal prices, The SHFE September nickel price fell 150 yuan to 75,350 yuan per tonne.  Nickel prices might be under pressure on lower demand and some planned projects starting at the end of May.
Continuing with The SHFE July aluminium price which dipped 30 yuan to 13,710 yuan per tonne.
Later, SHFE June zinc price felt down 290 yuan to 22,090 yuan per tonne.
Speaking about lead, June lead price slid 300 yuan to 15,990 yuan per tonne.
The SHFE September tin price was again flat, staying at same level as yesterday.

 

Currencies & data

Watching today’s market, there are some noteworthy facts out. Firstly the dollar index which  was recently at 99.58, on Friday went down 0.05% as of 03:19 BST.
The Brent crude oil spot price rose 0.06% to 50.79 per barrel while the Texas light sweet crude oil spot price was up 0.38% to $47.85.
The Shanghai Composite dropped 0.24% to 3,073.23.
US PPI data was again better than the forecast, at 0.5% month-on-month in April. Against the market expectations which were at 0.2%.
Later today, we will face the new data from US. Showing CPI, retail sales. Also preliminary University of Michigan consumer sentiment and inflation expectations. Observing EU, it has monthly industrial production data due.

There is a host of US data out today including CPI, retail sales and preliminary University of Michigan consumer sentiment and forecasts for inflation, while the EU has monthly industrial production data due.

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