Bar nickel inch higher; beside multi-week lows, and oil price collapse




Marginally higher trade among base metals traded on the SHFE. Due to weaker dollar during Asian morning trade on Friday May 5. But there remained near multi-week lows following an overnight collapse in the oil price. Nickel took the uptrend, as expectations of increased supply continued to push prices down.

“European markets are buoyed by the prospects of centrist Emmanuel Macron winning the second round in the French presidential election on Sunday. [May 7]”

The strength in the European markets had pushed the dollar down yesterday’s night. Reaching a November 2016 low of 98.695. Dollar index had recently rebounded to 98.78 as of 04:32 BST. But it was still much lower compared with 99.38 at approximately the same time on Thursday.

Overnight Oil Collapse

Following, an overnight collapse in the price of oil continues to keep SHFE base metals prices under pressure this morning.

The oil price is now back to its lowest point since mid-November with WTI oil sitting at $45.51 a barrel and below the level that prevailed before the OPEC’s oil production ceiling. (According to NAB.)

Despite the pressure, SHFE bases metals prices are inching higher. The exception is nickel, which is bucking the uptrend based on fears over increased supply following the rejection of Regina Lopez as the Philippines Environment Minister on Wednesday May 3.

Nickel below 76,000 yuan per tonne

September nickel contract on SHFE stood at 75,340 yuan per tonne as of 03:54 BST. Down 930 yuan compared with the previous session’s close.

“Nickel led the sector lower as the market reacted to the failure of the Philippines Environment Minister to be confirmed by lawmakers. Ms Lopez had been spearheading the closure of the nickel mining industry due to new environmental laws.”
Appointment of  Lopez as DENR secretary came as a glimmer of hope for nickel prices amid a weakened Chinese stainless steel sector. Also a number of China-backed nickel pig iron projects coming on stream in Indonesia.

Since the country relaxed its ban on the export of unprocessed ores in January, Indonesia’s first nickel ore shipment arrived in China on Monday May 1.

A possibility that Indonesia may expand its export quota, is adding to fears of increased supply in the market.
Union workers at Glencore plc’s Raglan nickel mine

have voted 99.6% in favour of a strike mandate. Means that the USW’s negotiation committee for the mine has the authority to initiate a strike if they consider it suitable. The Raglan mine, located in the Nunavik region of northern Quebec, produces more than 37,000 tonnes of nickel-in-concentrate annually.

Copper up marginally, but the pressure is present

June copper contract on SHFE stood at 45,200 yuan per tonne as of 03:54 BST. Up 20 yuan compared with the previous session’s close.

In the mean time, the LME’s three-month copper price stood at $5,530 per tonne as of 04:48 BST. Down 0.19% from last close.  LME copper inventories rose a net 32,925 tonnes to 317,850 tonnes, with 29,275 tonnes going into Busan, after a rise of 31,250 tonnes on Thursday.
Observing the supply side, Southern Copper said a strike at its Peruvian operations in April caused a production loss of

“only 1,418 tonnes of copper”.

Guinea Iron Project & BSGR Accusations


Mining company BSG Resources yesterday filled a lawsuit in federal court in NY .

Beginning accusing a billionaire George Soros for this projects losses. While accusing him as a financier of this project, they said he was scuttling an iron ore deal in Guinea. They were claiming the damage was worth 10 billion dollars !
Secondly, Businessman Beny Steinmetz is BSGR’s leader in a way that he controls the company.

  • Steinmetzz accused Soros and his controlled entities of manipulating the government of Guinea.


In addition to, stating he also manipulated elected officials and other misconduct. All with a goal to strip BSGR of mining contracts in Guinea in 2014.
“Israeli authorities put Steinmetz under house arrest on Dec. 19 after accusations that he paid tens of millions of dollars to senior public officials in Guinea to advance his businesses. He was released in January without being charged.”

George Soros

Speaking about the “deals” of George Soros. George Soros is a Hungarian-American investor, business magnate, and philanthropist. Relying to that, Soros is considered by some to be one of the most successful investors in the world.

As of February 2017, Soros has a net worth of $25.2 billion making him one of the 30 richest people in the world.

He escaped Nazi Germany-occupied Hungary and emigrated to England in 1947. He attended the London School of Economics graduating with a bachelor’s. Following eventually a master’s in philosophy. Therefore, he began his business career by taking various jobs at merchant banks before starting his first hedge fund, Double Eagle, in 1969.

Due to this specific BSGR case, Soros was doing some “anti branding” campaign for the company. He fabricated defamatory statements about BSGR’s involvement in corruption. And he claimed that someone should check the real BSGR’s financial reports. Probabily after they check the BSGR’s way of doing business.
“Soros was motivated solely by malice, as there was no economic interest he had in Guinea,” BSGR added.
BSGR thinks Soros was motivated by vileness, but there is one question. Why would a billionaire want to loose his precious time on sabotaging someone else’s businesses? It is only possible if he has some “profits” to gain out of that.
In conclusion, Michael Vachon, a spokesman for Soros, did not respond to requests for comment, made outside of regular business hours.

Finally, the case is 1:17-cv-02726 in U.S. District Court in the Southern District of New York. (Paragraf Info inspired by Reuters)