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LME Futures Report on Wednesday, August the 30th

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Intro

LME base metal prices are staying strong, at their current levels. Nickel and copper consolidated their recent gains. It was surely expected after few days of constant growth. 

Three month copper price went loosely up, but has again fallen to the level below $6,800 per tonne.

“Copper prices have had a strong run to the upside and although we remain bullish, the current upleg is looking quite stretched now, so some consolidation seems likely, especially if the dollar rebounds.” (Metal Bulletin analyst)

“The rest of the metals have been consolidating in high ground for some time, so they may be ready to push higher and catch up with copper’s lead.”  (Fast Markets)

 

Observing lead volatility, it yesterday closed up for 2.6%. This morning it is trading higher, due to cancelled 5,000 tonnes in Rotterdam. Leaving on-warrant stocks at 4month low worth.  

Aluminium, nickel and zinc are all trading remotely higher and consolidating at new levels.

 

Copper targets higher

The three-month copper price was up $5 to $6,796.50 per tonne.

Following, the Stocks declined a further net 9,975 tonnes to 223,050 tonnes with 15,000 tonnes re-warranted in various locations. 

China’s boosting macroeconomy will continue giving support to copper prices. Especially as the forecasts are expecting a new strong demand for copper during the upcoming season.

Following, the LME stocks declined sharply,

 and that indicated a positive fundamentals for copper. It peaked the level of $6,843.50 per tonne on Tuesday.

This volatility entered the market from the Asian part, where the most-traded January copper contract on SHFE also traded higher at 52,750 yuan ($7,989) per tonne.

 

Metal Prices

 

  1. ALUMINIUM

 

* The three-month aluminium price was up $3.50 to $2,098.50 per tonne.

*Stocks declined 225 tonnes to 1,324,325 tonnes.

 

     2. NICKEL

 

*Nickel’s three-month price was up $10 to $11,720 per tonne. Inventories fell 1,890 tonnes to 386,550 tonnes.  “Nickel prices are under consolidation; however, there is a large chance that we will see nickel price supported in September.” (MB analyst said)

 

    3. ZINC  & TIN

 

* The three-month zinc price was up $26.50 to $3,136.50 per tonne. Stocks declined 775 tonnes to 245,375 tonnes, cancelled metal now accounts for 54% of total stock. * Lead’s three-month price edged $6 higher to $2,384 per tonne.

Most noteworthy,  stocks declined 25 tonnes to 148,675. With 5,125 tonnes freshly cancelled in Rotterdam. The three-month tin price was up $60 to $20,410 per tonne. Inventories dipped 85 tonnes to 1,890 tonnes.

 

Currencies & Data

Observing the value of indexes, the dollar index was up 0.24% to 92.51.

Brent crude oil spot price was down 0.91% to $51.46 per barrel. * In data on Tuesday, the August German GfK consumer climate index was a slightly better 10.9. French July consumer spending rose the anticipated 0.7% on the month, while the country’s second-quarter GDP was up 0.5% as forecast. * In US data on Tuesday, consumer confidence for August rose to 122.9, from 120.0. * The economic agenda is busy today with UK net lending to individuals, M4 money supply and mortgage approvals and US data that includes ADP non-farm employment change, preliminary second-quarter GDP and crude oil inventories of note. * In addition, US president Donald Trump is expected to lay out his plans for tax reform later today, while US Federal Open Market Committee member Jerome Powell is also speaking.

 

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Base Metal Markets – August the 23rd

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Wednesday, the 23rd of august – Top 5 things to be aware of:

  1. Trump’s policy focusing on different fronts
  2. Worldwide manufacturing data shows resilience; U.S. in focus
  3. Mario Draghi avoids policy indication ahead of Jackson Hole
  4. Risk interested wavers standing in front of Central Bankers
  5. Oil prices trading lower

 

Volatility of Metals

Metal prices are following some very inspiring movement these days. The early morning trade on LME today went this way:  

We are speaking about morning trade:

This comes after yesterday’s split performance.

When lead led the gains with a 3.2% rally, nickel prices closed up 1% and copper closed up 0.2%. The rest were led lower by a 0.8% decline in tin prices. (Fast Markets data in numbers)

Speaking about precious metals, the prices are up across the board this morning by an average of 0.3%. Inspired by a 0.4% rise in silver prices, spot gold prices are up 0.2% at $1,285.86 per oz. This follows a down day on Tuesday when the complex closed off 0.6% on average, led by a 1% fall in palladium prices. (FM)

 

SHFE today 

Observing the morning trade on the SHFE, the base metals complex is for the most part weaker with prices off an average of 0.4%. Led by a 1.7% drop in tin prices, aluminium and zinc prices are off 1.1% and copper prices are off by 0.1%. 

 

Pointing at 51,570 yuan ($7,739) per tonne. 

Bucking the trend are lead and nickel prices, up by 1.5% and 0.1%, respectively.

Other metals in China are showing some down movement. SHFE rebar prices are down 4.9% and iron ore prices on the Dalian Commodity exchange are down 3.7% at 580 yuan per tonne on the January 2018 contract. The gold and silver prices on SHFE are both down 0.4%.

 

International Markets

In international markets, spot Brent crude oil prices are up by 0.2% at $51.71 per barrel. The income on US ten-year treasuries is firmer at 2.21%, and the German ten-year bund yield is at 0.40%

 

Indexes 

In the end, observing the Indexes and their market movement:

Firstly, the Hang Seng Index is up (+0.9%), the Nikkei (+0.2%), the CSI 300 (0.1%). All of these are higher, while the ASX 200 is off 0.3% and the Kospi is off 0.1%. In the USA, the Dow Jones closed up 0.9% at 21,799.89 and in Europe, the Euro Stoxx 50 closed up 0.94% at 3,455.59.

(Exact Numbers in the Article coming from the Fast Markets.)

 

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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.

 

 

 

 

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Metals trade today: LME & International Economic Events

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LME Today:

Metals prices on the LME slightly declined during morning trade today. Prices were down for an average of 0.6%.

Recollecting the positive Monday, that had closing prices up for about 0.3%. Nickel had a fall of 1.7%, but the average gain would have been 0.6% led by a 1.2% rise in aluminium price.

Firstly, spot precious metals were up for about 0.4% this morning. Gold prices are up 0.2% at $1,233.50 per oz, the rest are all up 0.5%. This comes after a mixed day’s performance on Monday when palladium prices dropped 1.1%, silver and platinum prices were up around 1.1%, and gold prices were up just 0.2%.

Secondly, observing morning trade in SHFE, copper and aluminium prices were a bit up, with copper prices at 45,220 yuan ($6,555) per tonne.  Other base metals complex are down an average of 0.8%. Spot copper prices in Changjiang are up 0.1% at 45,120-45320 yuan per tonne, while the LME/Shanghai copper arb ratio is weaker again at 8.10.

International Markets & Main Economic Events

Thirdly, Brent crude oil prices are up 0.3% at $51.92 per barrel. The market oscillates on a likely OPEC deal extension. The yield on the US ten-year treasuries is little changed at around 2.33%.

Equities on Monday were firmer, the Euro Stoxx 50 closed up 0.1% and the Dow closed up 0.4% at 20,982. Asia has generally seen follow through buying interest this morning with the Nikkei and ASX 200 up 0.2%, the CSI 300 is up 0.1%, the Kospi is up marginally, while the Hang Seng is bucking the trend with a 0.3% decline.

If we have a closer look, the dollar index is showing weakness again.  It is now leveled at 98.75, having seen a recent high of 99.89. For now the 2017 trend is to the downside, with recent lows at 98.54.

Following, the euro is now stronger at 1.0994, it looks well placed to push higher. Also the Australian dollar at 0.7425, seems to push higher. While the sterling and the yen are flat. Sterling at 1.2912 and yen at 113.49.

Economic data

Japan’s tertiary industry activity slipped 0.2% after a 0.2% climb previously.

later there is data on French and UK CPI and a host of other UK price data and leading indicators, Italian and EU GDP, German and EU ZEW economic sentiment and data on the EU trade balance. US data includes: building permits, housing starts, industrial production, capacity utilization rate and mortgage delinquencies – see table below for more details.

Chinese infrastructure projects

President Xi Jinping’s oath of $78 billion worth of financing for infrastructure projects, indicates the One Belt One Road plan is continuing.  It should be long-term backup for metals’ demand. This affected positively almost all the metals on Monday. But if that will be further trend, we will see soon.

 

Other Base Metals

Nickel started to fall yesterday, while copper and aluminium were showing some weakness this morning. Zinc and lead prices are looking more fragile. Today’s lead prices setting a fresh low at $2,092 per tonne. Unless buying emerges soon, the path of least resistance looks set to remain to the downside.

 

Precious Metals

Most of the precious metals are more solid, their recent price weakness appears to have induced agreement hunting.

Except palladium, where resistance above $820 per oz. It seems to be acting as a cap and lack of upside progress is encouraging profit-taking.  Seems like silver and platinum have currently looked oversold.

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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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Base metal prices keeping a downward trend (info & data)

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Important to know of Today’s market:

  • European CB President Mario Draghi Speaks
  • Bank of Canada Governor Poloz Speaks
  • UK Services Purchasing Managers Index rose to actual 55.0 (forecast was 53.3)

For more info: https://www.investing.com/

 

LME Today:

All base metal prices on the London Metal Exchange humbled today in morning trade, May 4. After a significant sell-off on Wednesday that saw copper prices down 3.7% and nickel falling 3.3%.

Three-month copper price fell further this morning as it began trading below $5,600 per tonne. Nickel price fell additionaly $150 per tonne. All other base metals saw a slight decline.

Metal Bulletin senior analyst, William Adams, said:

“The battering the base metals suffered on Wednesday has poured cold water on last week’s attempted rebounds and has opened the way for more price weakness, especially in the case of nickel where prices have dropped to levels not seen since June last year.”  (Metal Bulletin)

Copper inventories on the LME have risen by over 60,000 tonnes over the last two days.

 

Copper below $5,600/t

On Wednesday, the LME copper price plummeted by over $200 per tonne at the close of trading. Three-month copper price is down $39.50 to $5,560.50 per tonne.
Copper inventories up 32,925 tonnes to 317,850 tonnes, with 29,275 of this in Busan. It follows a rise of 31,250 tonnes yesterday.

  • Reuters wrote that German copper products group Wieland will be acquiring the copper and steel tube business Wolverine Tube as part of its plans to expand internationally.

Workers at PT Freeport Indonesia still continuing with the one-month announced strike. They are persistent & not giving up their ideas. This is reducing the copper outputs. And will surely lead to lower supplies.
 

Other base metals fall

Three-month aluminium price fell $12.50 to $1,911 per tonne.  Stocks declined 1,175 tonnes to 1,609,925 tonnes. 

“Held well against yesterday’s sell off, trading in a $19 range (vs copper that spanned $196) with evidence of consumer buying via the spreads market. Light turnover in comparison to the copper and nickel.” (F.M.)
Nickel plunged another $150 to $9,080 per tonne. Yesterday nickel prices declined $285.  Inventories were up 30 tonnes to 380,502 tonnes.
The 3month zinc price fell $26.50 to $2,548.50 per tonne. Inventories for zinc fell 2,250 tonnes to 342,475 tonnes. Glencore’s zinc production rose 9% y-o-y, with the company adding that it currently has no plans to restart idled capacity in Australia and Peru.
Lead started trading today at $2,167.60 per tonne – a decline of $34.50 on yesterday’s close. Stocks were up 5,550 tonnes to 174,250 tonnes.
The three-month tin price decreased just $60 to $19,830 per tonne as it consolidates around the $19,800-19,900 mark.
Tin stocks on the LME fell to the lowest recorded since 1980 yesterday. Stocks declined a further 35 tonnes today and currently stand at 2,630 tonnes. (Numbers from Fast Markets)

Finishing

Metal Bulletin wrote an article on data about: Spanish unemployment, services PMI across Europe, data on UK lending, EU retail sales and a host of US data including: Challenger job cuts, initial jobless claims. Also non-farm productivity, labour costs, the trade balance. Paying attention to factory orders and natural gas storage. There’s many going on today, it will also be a challenging trade for next few days.

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Market NEWS Today (25.04) Copper price rises; base metals consolidate

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Top 5 things you need to know in the financial Markets on Tuesday:

  • Global stocks, euro extend French election rally
  • Dozens of U.S. earnings ahead
  • Oil attempts to break 6-day losing streak (later in text)
  • North Korea conducts live fire drill as tensions rise
  • U.S. slaps tariffs on Canadian lumber

For further info about these subjects, visit https://www.investing.com/

 

LME :

Base metal prices on the London Metal Exchange were generally up this morning, with copper seeing the biggest increase.

Lead and tin were the only base metals to see a decline, but aluminium is trading only at $1 per ton higher than Tuesday’s kerb.

Nickel prices set fresh lows for the year at $9,245 per ton yesterday but is the metal is currently trading at $9,265 as it continues to suffer from free-falling prices earlier this month.

French Elections Results:

There may be some slight growing confidence in the market due to the results of the French elections over the weekend. Presidential candidates Emmanuel Macron and Marine Le Pen won the first round of voting in the French election on Sunday and will head into a run-off second round on May 7.

Alastair Munro of Marex Spectron noted: “While our latest speculative positioning estimates broadly highlights the recent theme of long liquidation, with nickel and zinc now seeing shorts established, traders in the base metals complex focus on broad trading ranges.”

Copper prices also found support in the news that US president Donald Trump will unveil more details of his tax reform plans on Wednesday.

Copper price rises

The three-month copper price saw a $40.50 increase to $5,695.50 per ton. Copper stocks fell by 2,600 tons to 262,250 tons. LME on-warrant stocks have fallen four days in a row. Anglo American has reported a 3% year-on-year drop in copper production during the first quarter of 2017.

Munro said: “Also Freeport has indicated plans to increase open pit production at Grasberg to 145kt/day and deep zone ore output to 40kt/day. It appears that union workers are still planning to strike in May.” Workers at Freeport-McMoRan’s Grasberg copper mine are said to be planning a month-long protest around the same time that exports are expected to resume.

 

Other base metals up

The three-month aluminium price rose by $1 to $1,947 per ton as it aims to bounce back above $1,950 per ton. Aluminium stocks fell by 9,325 tons to 1,668,325 tons, with 105,425 tons of freshly cancelled stock.

Nickel is trading at $9,265 per ton, a $5 increase on yesterday’s kerb. Stocks fell by 324 tons to 386,172.

The three-month zinc price has seen a $13.50 per ton increase to start trading at $2,617.50 per ton. Zinc inventories fell by 1,525 tons to 351,675 per ton.

 

Tin and lead decline

Lead was one of only two metals to fall, seeing a $2.50 decline to $2,160.50 per ton. Stocks were down 600 tons to 166,325.

The three-month tin price fell by $30 per ton and is currently trading at $19,620 per ton. Inventories fell by 75 tons to 3,095 tons.

 

Currency moves and data releases

  • The dollar index was recently down 0.06% to 98.99.
  • In other commodities, the Brent crude oil spot price was up 0.12% to $51.66 per barrel.
  • In equities, the FTSE 100 was up 10.56 to 7,275.24.
  • On the economic agenda, data on US CB consumer confidence, house price index, new homes sales and UK public sector borrowing is due today.

 

 

 

 

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LME: copper price up; all other base metals slightly lower this morning

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Friday April the 21st LME:

 

Copper was the only base metal which went slightly up in this mornings trade. All other base metals prices fell.

 

With the three-month aluminium price falling $2 per t and zinc dropping $10.50 per t.

“The market is looking volatile at the moment; we have had a few quiet days but have recovered from earlier week weakness.” (FastMarkets)

LME copper prices hit three-month lows at the start of the week but have rallied in the past few days. Instantly, it is trading at 0.5% higher than Thursday’s kerb price.

“Dip-buying appears to have emerged into the recent weakness in base metals prices, this fits in with our overall view to remain mildly bullish for the complex,” Metal Bulletin analyst William Adams noted. (FM)

 

Copper prices edging up

 

The three-month copper price rose by $28.50 to $5,651.50 per ton. While copper stocks fell by 50 ton to 268,400ton, with 11,025 of freshly re-warranted copper. Global refined copper market posted a surplus of 51,000t in January, the International Copper Study Group (ICSG) said in a monthly report on April 20.

 

Chile’s Codelco suspended operations at a concentrator plant at its Salvador copper mine after a supervisor died in an accident. The facility produced 60,000 tons of copper in 2016. (Reuters)

 

All other base metals see decline

Aluminium price in three-month report fell by $2 to $1,941 per ton as it restored above $1,900. Inventories were down 14,925t to 1,687,875t. Nickel’s three-month price fell by $35 to $9,445 per ton – nevertheless bouncing back from dips over the last few days.

Stocks for nickel increased by 5,208 t to 380, 946 t. Zinc price (3months) started trading at $2,621.50 per ton, down $10.50 on yesterday’s kerb. Inventories fell 1,300 tons to 355,150 tons.

“Data released by China’s NBS showed its domestic zinc production fell to 504,000 tons in March, the lowest level in a year as smelters conducted maintenance during the recent ore shortage,” ANZ Research said on Friday.

Lead was trading $6 lower this morning at $2,153.50 per ton. Stocks were down 500 tons to 167,175 tons.

Tin price in three-months fell $15 to $19,860 per ton as it failed to rally back above the $20,000 per ton mark. Inventories for tin were unchanged at 3,195 tons for the second day in a row.

 

Currency moves and data releases

  • Dollar index was down to 99.76, a 0.08% decrease.
  • The Brent crude oil spot price fell by 0.02% to $52.97 per barrel.
  • The UK FSTE 100 was up 2.58 to 7121.12.
  • In data, EU consumer confidence was -4 for April after being forecast at -5, while the CB leading index was 0.4% for March.
  • EU and US flash manufacturing and services PMI, EU current account, US existing home sales and UK retail sales are due.

 

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COPPER Export Volumes and Prices After Break

Brazil copper ore export volumes

 

Brazil’s ore export volumes fell 4.7% year-on-year in March. Exports totalled 95,829 tonnes. Down from 100,528 tonnes in March 2016. The main destination for the Brazilian copper ore was India. With an intake of 31,583 tonnes last month. About 70% of the shipments came from the northern state of Pará, where Vale has its copper operations.

In the first quarter of 2017, Brazilian copper ore shipments declined to 284,350 tonnes. Opposite of 320,518 tonnes in the same quarter of 2Co016.

 

Cathode

 

Brazilian cathode exports posted a significant year-on-year drop in March. As Paranapanema, the country’s only producer, shifted its focus back to the domestic market. Cathode exports reached 1,766 tonnes last month, down from 16,138 tonnes in March 2016.

In the first quarter of 2017, Brazilian cathode exports totaled 5,779 tonnes, down from 39,984 tonnes in the corresponding period of 2016.

 

 

 

Copper wire

 

Brazil exported 2,022 tonnes of copper wire in March, down from 3,515 tonnes a year earlier, according to MDIC.

http://www.mdic.gov.br/

However, shipments inched up to 7,072 tonnes in the first three months of 2017. Compared with 6,660 tonnes in the same months of 2016.

 

Chicago Mercantile Exchange copper volumes jump 8.2% y-o-y in March

Comex copper futures saw volumes grow 8.2% year-on-year in March. Its volatility coming from uncertainty over the US infrastructure plan and anticipated resolutions to supply disruptions in Chile and Indonesia. (CME group info)

Throughout the month, c. futures saw monthly average daily volumes (ADV) hit 79,265. Bringing the year-to-date ADV to 94,653 – up 10.8% compared with the same period a year ago.

It has been a chaotic year for the red metal, with strikes in South America and export issues in Indonesia tightening supply and flipping the market to a humble deficit. Since the beginning of the year, Comex c. open interest has set multiple records and hit an all-time volume high of 300,996 lots on February 13. The same day, the contract reached its 14th open-interest record this year.

Overall, CME average daily volumes reached 16.9 million contracts in March. (Up 18% year-on-year).

The CME’s copper product was launched 30 years ago, but it struggled to compete against the London Metal Exchange’s well-established contract and focused mainly on the North American market.

That changed in 2014, when the CME decided to push more aggressively into the copper market with a focus on Asia. In 2016, ADVs traded on CME Group’s Comex copper contract rose by 26.5%. By contrast, LME copper volumes fell 5.6% in 2016. While total copper trading volumes on the Shanghai Futures Exchange dropped by 18%.

 

Other metals

In other metals, gold grew at a rate of 7% in the first quarter, supported by a positive macroeconomic backdrop and doubts of US monetary hawkishness, the report said. Overall, precious metals futures ADV increased by 5% last month compared with March 2016.

Additionally, aluminium premium aggregate open interest reached an all-time high on March 1, at 66,384 contracts. The CME Group is the world’s largest derivatives marketplace, with trading facilities in New York and Chicago, where it is headquartered.

 

Shanghai FE copper dips as supply concerns wane; Al inches higher amid news of capacity cuts

Prices on the Shanghai Futures Exchange dipped slightly during

Asian morning trading on Tuesday April 18, as concerns over supply tightness continued to wane.

The SHFE June copp. contract was recently at 46,350 yuan ($6,734) per tonne as of 03:00 BST, 30 yuan or 0.06% lower than Monday’s close.

Kazakhstan’s refined copp. production in March rose 12.7% year-on-year to 36,000 tonnes and the production in the first quarter of this year rose 1.8% on a yearly basis to 102,000 tonnes, China’s Galaxy Futures said on Tuesday.

 

“Overall, worries of a supply shortage have gradually scattered.” (CGF)

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