Report On Base Metals  01/09

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Global demand

Base metals demand is boosted up and supported by the Chinese economy data, PMI index rising to 51.6, from 51.1. This morning the prices were up average 0.1%.


Nickel prices were upside than down finishing with the 0.8% gain. Following with tin price up about 0.3%, while aluminium lifts up for 0.2%.

Copper price came off 0.1%, leveling $6,812 per tonne. Lead and Zinc were off 0.2%.
Trade average Volume  is with 6,588 lots as of 07:13 BST.

The Following results are coming after Thursday. When base metals closed at average 1.2% up. Zinc yesterday rose for 2.4%. Nickel and Al were up 1.6%… Tin was little changed…


Precious metals

Prices saw a slight volatility, with gold prices at $1,320 per oz. The palladium prices are off 0.2% at $933.50 per oz.

“This came after a day of strength on Thursday when the complex closed up an average of 0.8%, helped by a reversal in intraday dollar strength on benign inflation data. “ (Fast Markets)



In The SHFE trade this morning, base metals are up across the board with average gains of 0.9%.

Nickel prices rose for 1.8%. Copper prices are lagging behind with a 0.2% gain to 52,740 yuan ($8,013) per tonne, as other metals play catch-up with it.

Changjiang spot copper prices are little changed at 52,540-52,680 yuan per tonne. While the London/Shanghai copper arb ratio is weaker at 7.74 (7.77).

Steel rebar prices on the SHFE are up a whopping 6.1%, while gold and silver prices are up by 0.7% and 0.2% respectively.

Iron ore prices, for January delivery, are up 4.5% at 584 yuan per tonne on the Dalian Commodity Exchange.


International markets


In international markets, speaking about Oil prices.. Spot Brent crude oil prices are off 0.2% at $52.64 per barrel. The yield on US ten-year treasuries has eased to 2.13%. Due to the German ten-year bund yield, which has fallen to 0.36%.


Equities in Asia are for the most part slightly firmer this morning – both the Nikkei and the ASX 200 are up 0.2%. The Hang Seng is up 0.1%, and the CSI 300 little changed, while the Kospi is off 0.2%. In the USA, the Dow Jones closed up 0.25% at 21,948.10 on Thursday.

Euro Stoxx 50 closed up 0.52% at 3,421.47.

Observing the dollar index, it spike up to 93.35 on Thursday, before closing at 92.61, it was recently quoted at 92.77 as it consolidates ahead of today’s US employment report. The report is likely to spark a reaction from traders as they adjust their view on likely Fed monetary policy. A good report could make the market think the Fed will turn more hawkish again. This could give the dollar a lift and that could weigh on metal prices.

Currencies are recent movements are: The euro at 1.1883 is correcting some of its recent gains, the yen at 110.17 is consolidating, as are sterling at 1.2915 and the Australian dollar at 0.7935.

In emerging market currencies, the yuan is stronger at 6.5809 – another sign of confidence in the economy and for the most part the other currencies we follow are flat-to-firm. Although the peso is slightly weaker.


Aluminium and nickel prices have now joined copper prices in pushing the envelope on the upside and zinc prices are close to following.  Furthermore, lead and tin prices are still lagging behind. Good data out of China and a weak dollar are supporting the firmer tones in the base metals. The recent rallies are looking quite stretched, although there have been bouts of consolidation along the way.

A huge part of metal movement depends on dollar. If it avoids rebounding, then the high price levels will likely scale up selling. Then the upside movement is about to grow.

Electric Cars market boosting the demand for base metals

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Logical level up, but also very important fact to be aware of: Electric vehicles market is boosting growth, the new technologies are entering the big door everywhere.

Firstly, the use of batteries is pushing base metals demand from across the sea. South32, australian-based miner buoyed by an 8-fold leap in annual profit. 

Secondly, mining and metal producing companies are very inspired with current situation. Their profits are doubtlessly rising.


South 32’s position

Following, South 32 is a base metal and coal mining company. It has wide exposure to aluminium and nickel. Now, their Cannington mine in Australia enters the list of world’s largest sources of nickel, silver and lead.

“If you look at the metals we produce, they are either used in renewables or battery technology.” (South32 CEO)

“We are looking to add more base metals exposure to the group… We do see battery technology having an impact over time.”

Company’s profit

“South32 posted fiscal 2017 underlying profit of $1.15 billion, up from $138 million the previous year.” (Source – Reuters)


Glencore’s position 

Thirdly, Glencore CEO Ivan Glasenberg also frequently said that the coming large-scale usage of electric vehicles and energy storage systems will definitely unlock consequential new sources of demand for copper, cobalt, zinc and nickel.

This electric vehicles phenomena is influencing the world’s largest miner BHP to invest heavily in its nickel business.

“While South32 was prepared to supply a host of metals used in making batteries for electric vehicles and other systems, it sees overcapacity in lithium, the driving component of the burgeoning lithium-ion battery technology.” (Reuters)

By Morgan Stanley’s forecast the use of electric cars is going to rise to the immense number of 99 million new vehicles in 2020! 


Consequences and market Influence

Having in mind that the electric vehicles are our close future.. and that the environmental development depends on this… We should be aware that the consequences of these changes will push the demand for the base metals up, and in case nothing serious changes in world’s macroeconomic movements in recent months/years; the nickel, zinc and lead traders will witness very bright outcomes.

In conclusion, as South32’s promise explains:

“Our purpose is to make a difference by developing natural resources. Improving people’s lives now and for generations to come. Owners trust us and partners realise the potential of their resources.”

For further info on this subject visit:

Base Metal Market News, August the 21st

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Top 5 things to know today – global markets:

  1. War games start on Korean peninsula
  2. Renewed U.S.-North Korea tensions causing global stocks slide
  3. Dollar still remains defensive on U.S. political tensions
  4. Oil started the week a few percents lower
  5. Maersk sells oil unit to Total for $7.5B as M&A heats up

For detailed info on these subjects visit:

Some useful analysis:


Last Three months – overview:

Lately, there has been some really crazy movement happening in the base metal markets. Observing the All-along summer period, we see few metals hitting their highest level in a decade.

Firstly we must pay our attention to the period of may/juni/july/august 2017. During the whole  summer period, base metal markets trade showed some astonishing positive trends.

Secondly, along with the huge volatility which took place in july, the base metal prices now are hitting the great record levels.

Current prices :

Today, the Zinc price is peaking to the level of 3180.50 ! These levels were not seen since the far 2007.

Furthermore, observing the copper and aluminium prices.. Due to cutted supply in energy markets, their prices are hitting the highest prices since 2014 and 2015. This is definitely a very positive incline in all the base metal prices. Which also makes investors confident about further buying\selling steps.

All of this rallies are happening due to tightened supply. And certainly growing demand in the markets. Global demand is supporting the price rallies and this is spreading fast.


China’s demand:

Despite China’s industry showing a slight fade in the metal demand in July, the IMF made average growth forecast for period regarding 2018-2020. As China’s zinc production fell in July, lead output rose by couple percent in this period. Currently Chinese infrastructure now is developing and is kept at solid activity showing strength. 

Aluminium output in China fell 8.2 percent in July as capacity cuts started to take their actions. China makes more than half the world’s aluminium, and it is obviously putting China in the most important world’s suppliers.


Copper price movements:

Observing the copper prices and their movement, we also notice the important inclines. From may’s high of about 5786, to august’s high of 6596. Freeport power plant in Indonesia was currently hardly affected by floods taking place there. Due to these floods, one of the workers is missing.

Benchmark copper finished 2.4 percent higher in Friday the 18th of august, at $6,532 having touched $6,576.50, the highest since November 2014.


Nickel & lead:

Nickel is currently trading at $11,305,  which is the record level regarding the whole summer period, which is then the highest ever since 2014!

Observing the current lead prices, it is trading at $2376.

In all, having observed the summer 2017 period, we can bring the fine conclusion that base metal markets are quiet recovering.

“Momentum funds are buying the strength, piling in as the price rises.” (Reuters)

“The rallies had been supported by expectations of strong global demand and tight supplies.” (Reuters)


BHP enforces to dredge new nickel mines in Western Australia

Today’s Morning trade Global

Base metals prices on the SHFE were mainly lower today. The copper prices were oscillating between slight gains and losses. As consolidation set in following the rally seen since May 19.

The most-traded July copper contract on the SHFE was unchanged at 45,770 yuan ($6,644) per tonne. As of 05:00 BST. Around 163,000 lots of the contract have changed hands so far.

In the meantime, three-month copper contract on the London Metal Exchange fell $45 to $5,669 per tonne.

The existing rally in copper prices since late last week is mostly driven by macroeconomic factors. For example a weaker dollar, stronger crude oil prices, etc… 

“So far this year, SHFE copper prices have tended to move lower after rebounding for a short while. We think fluctuations will continue for copper prices as it seeks its low for this year.” (Beijing analyst said)

“There has been some supply disruptions. But it was not enough to cause prices to surge. Which means the problem could be with demand.”


China’s rating

On Wednesday, Moody’s downgraded China’s rating to A1 from Aa3. Happened on expectations that China’s financial strength will erode somewhat over the coming years. With economy-wide debt continuing to rise as potential growth slows.

“While ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt. Also the consequent increase in contingent liabilities for the government.” (Reuters reporting on China’s subject)
After falling to as low as 96.79 on Monday a rebound in the dollar index on Tuesday also checked investors’ appetite for commodities.

Crude oil prices were supported by expectations that members of the OPEC will agree to extend their supply cut into next year during their meeting in Austria on Thursday May 25.


BHP – New Nickel Mines


BHP Billiton is looking for environmental and ecological approval. In order to dig two new mines to extend the life of its Nickel West unit. The planned mines are located in the state of Western Australia.

One of the world’s top nickel producers – Nickel West, applied for EPA of Western Australia. It is the Environmental Protection Authority. According to info found on their official site, the company asked to clear 842 hectares (2,080 acres) for two open pit mines.

BHP has earmarked about $2 million per month during 2016 and 2017 for making improvements at Nickel West. (Reuters)

Nickel West gets lots of the concentrated ore it uses, to feed its 100,000 tonnes-per-year Kalgoorlie nickel smelter, from its neighbor Mount Keith mines. It also has deals with other miners operating nearby for additional feed.

“At the current rate of production, the resource supporting Mount Keith will need to be sustained from other ore sources at some stage over the next five years.”

“Securing environmental approval for the proposed Mount Keith Satellite Project will help to ensure Nickel West has a strong future and will continue to make a significant economic contribution.” (BHP)


Nickel prices

Observing the period of past 6 years, the Nickel prices have fallen nearly 70 percent, due to a global supply glut. The 70% is serious number, and it affected the market firmly.

”BHP booked a $1.25 billion after-tax impairment on Nickel West in 2013. A year later, following an unsuccessful sales process, BHP took Nickel West off the auction block.” (Reuters)


Asian morning trade on May 9th


Tuesday May 9 is a day when copper prices on the SHFE went higher, speaking about Asian morning trade . There is definitely some back up in the release of China’s better-than-expected trade balance. Anyway, gains were suppressed by concerns of weakened demand from the world’s largest copper consumer.

Price of the most active SHFE June copper was up 70 yuan ($10) to 44,720 yuan per tonne. Regarding as of 03:18 BST with around 11,510 lots changing hands so far. Open interest of the contract was at around 35,660 positions.

China’s trade balance


China’s dollar-denominated trade balance for April stood at $38.1 billion. This is exceeding a forecast of $35.3 billion. And especially March’s balance of $23.9 billion. That is a sign of healthy boost up in imports as well as the exports.

Every way, copper prices were under pressure after the release of disappointing import data from China. These data showed total copper imports into the Asian nation fell. And they fell to their lowest level since October 2016. China’s total copper imports for April fell 33% year-on-year to 300,000 tonnes. Making them down from 450,000 tonnes in the same month last year.

“This was tempered by a strong increase in copper concentrate imports, up 7% y-o-y nevertheless ongoing supply disruptions impacting concentrate availability. Everyway, the fall in refined copper imports revived concerns about weak demand at the world’s largest consumer.” (ANZ)

In the meantime, the dollar had a step back this morning – falling 0.03% to 99.11 as of 03:18 BST . Also giving fine support to base metals prices.

Nickel prices UP due to reduced output

Firstly, The SHFE September nickel contract surged 350 yuan to 74,550 yuan per tonne.
“Nickel prices have been under pressure throughout April. This increased market participants’ appetite for dip-buying. Specially on top of which, nickel’s output was largely reduced in April.”
Secondly, China produced 12,580 tonnes of nickel in April. Which is down exactly 3,220 tonnes y-o-y. And 770 tonnes from the prior month.

“Following, the market sees a low stainless steel inventory prone with traders. There was a wave of rallies in April to May 2015 driven by low availability of stainless steel stocks in traders’ hands. So they needed to build up stocks. It is possibly an indication of better nickel demand in recent future.”


Other base metals going positive

Thirdly, June aluminium price was up 15 yuan to 13,675 yuan per tonne. Observing the June zinc price, it rose 135 yuan to 21,905 yuan per tonne.

In the meantime, june lead price inched up 25 yuan to 15,945 yuan per tonne. Finally, the September tin price surged 1,590 yuan to 139,990 yuan per tonne.

Currencies & data

Speaking about oil prices and currencies, the Brent crude oil spot price declined 0.2% to $49.32 per barrel. While the Texas light sweet crude oil spot price was down 0.21% at $46.42.
Observing equities, the Shanghai Composite dipped 0.16% to 3,073.76.  In data, EU Sentix investor confidence for May was better than expected at 27.4 – smashing expectations of 25.3 and up from 23.9 previously. April’s US labour market conditions index was at 3.5, remotely under the precedent month’s reading of 3.6.

Small price increases for LME base metals; only zinc declines (27.04.)


Another morning of wispy price increases today, on the London Metal Exchange. Following average gains of 0.8% on Wednesday.

Zinc was the only base metal to see a decline this morning, falling just $2 per ton. All other metals recorded small increases.

Copper prices were followed by the news that major copper producers BHP Billiton, Freeport-McMoRan and Antofagasta had lowered their production forecasts for 2017 due to operation disruptions. The three-month copper price continued to rise, currently trading at $5,719.50 per ton.

Nickel hit its lowest since June 2016 at the kerb of trading yesterday, but rose $40 per ton during premarket trading this morning.

“On balance, we remain mildly bullish for the base metals’ fundamentals but volume on the LME remains low, so it may take a pick-up in volume before prices become more directional again.” (Metal Bulletin senior analyst William Adams.)

Copper price rallies


  • The three-month copper price rose by $4.50 to $5,719.50 per ton – this is the fourth day in a row the copper price has increased.
  • Inventories fell 900 tons to 260,575 tons, a fifth consecutive day of decline. 
  • Sucden Financial noted in its Q2 metals forecast: “Supply disruptions [for copper] and labor disputes will have the potential to squeeze prices higher still and, with macro tailwinds suggesting robust demand growth, we expect prices to trade on the floor at around $5,550 per ton.”
  • BHP Billiton has cut its copper production guidance for the 2017 financial year again due to the 44-day long strike at its Escondida mine during the quarter ending March 31, following a 2% reduction on its guidance in the fourth quarter last year.
  • Rio Tinto has also revised its 2017 copper production guidance downward after reporting a 37% decline in first quarter copper output due to the significant impact of the strike at Escondida and the production curtailment at Freeport’s Grasberg.

All other base metals rise; Zinc decline

The three-month aluminium price continued its premarket trend of the week with a small increase. It rose $5.50 to $1,969.50 per ton.

Aluminium stocks fell again, but by the smaller margin that we have recently been seeing; they dropped just 3,925 tons to 1,652,200 tons.

Nickel rose $40 to $9,265 per tons, as it tries to recover from freefalling prices over the last few days. Nickel stocks were down 336 tons to 379,002 tons.

Zinc was the only metal to see a price decline. The three-month zinc price fell $2 per ton to start trading at $2,624 per ton.

The three-month lead price saw an increase of $6 to $2,191 per ton and Inventories fell 350 tons to 165,400 tons.

Tin rose $10 to $19,910 per ton, and it looks to bounce back above the $20,000 per ton mark. Stocks for tin fell 10 tons to 3,020 tons.

Currency moves and data releases

  • The dollar index was up 0.01 to 98.96.
  • In other commodities, the Brent crude oil spot price was down 0.62% to $51.13 per barrel.
  • The UK FSTE 100 was down 38.22 (0.52%) to 7,250.50.
  • In data, US crude oil inventories saw a decline of 3.6 million. The stronger-than-expected decline is crude oil inventories is boosting oil prices, which in turn exerts upward pressure across the metals complex.
  • The Gfk German consumer climate for April was 10.2, up on the previous rating of 9.8. The Spanish unemployment rate for Q2 of 2016 was 18.8% – higher than the forecasted 18.6%.
  • The economic agenda is busy today with a host of US data out, including on core durable goods orders, unemployment claims, goods trade balance and pending home sales.


Nickel deficit of 100,000t expected for 2H17; Norilsk Nickel forecasts


MMC Norilsk Nickel

MMC Norilsk Nickel is a Russian nickel and palladium mining and smelting company. Its largest operations are located in the area near the Yenisei River in northern Russia. It also has holdings near the Kola Peninsula, area of Norilsk-Talnakh and in western Finland at Harjavalta. It operates in Southern Africa in Botswana, South Africa, and western Australia.


Firstly, company’s headquarters are in Moscow. Also it is the world’s leading producer of nickel and palladium. International ranking agencies ranked it among the top ten copper producers.

Secondly, the nickel deposits of Norilsk-Talnakh are without doubt the largest nickel-copper-palladium deposits in the world.


Production divisions

Following, the company currently has five main operational divisions. Beginning with The Polar Division of MMC Norilsk Nickel and ancillary activities, located in the Taimyr Peninsula. After comes Kola MMC, and ancillary activities, located in the Kola Peninsula. In Finland there is Norilsk Nickel Harjavalta, Finland’s only nickel refining plant, purchased from OM Group in 2007. Later N.N. in Africa, which includes stakes in mines in Botswana (85% of Tati Nickel) and in South Africa (50% of Nkomati), both formerly owned by Lion Ore. Finally there is Norilsk Nickel Australia, which owns several mines and facilities in the western part of the country.


Nickel forecasts

MMC Norilsk Nickel, as one of the world’s largest Nickel producers, expects the market deficit to widen to 100,000 tons by the end of 2017. These news were carried out at the International Nickel Conference in Lisbon. The company’s head of market research explained to delegates their possible expectations.

“We are cautiously positive for 2017. We expect the deficit to widen to 100,000 tons in a base case scenario, but this situation remains unstable due to a number of material uncertainties.” Denis Sharypin said. (Fast Markets)

According to data from the International Nickel Study Group (INSG), the nickel market moved into a deficit of 49,700 tons in 2016 from a surplus of 91,400 tons in 2015.

“Indonesia could change this drastically, however,” he said.


Indonesian Nickel Ore


The Indonesian government surprised markets in January when it relaxed the country’s three-year ban on unprocessed ore.

In terms of demand, there are a few factors that might affect that forecast. For example stainless steel production growth in China and Indonesia and the high off take by alloys and strong increase in batteries.

In terms of supply, the political situation in the Philippines with its potential to shut down 20 or more mines is just one variable that could affect forecasts.

In Indonesia, around 5 to 6 million tons of low grade ore are available and ready for export. It has also the potential to impact the forecast.

“The worst case scenario is that a substantial surplus is also possible,” said Denis Sharypin.

Indonesia produces 17 million tons of nickel ore per year. 10 million tons of this quantity is low-grade ore. The country’s nickel smelting capacity is currently 16 million tons and may reach 18 million this year.

Low-grade ore is harder to process and smelters have been unwilling to take it at first. But in order for miners to get high-grade ore, they have to dig through low-grade ore first, which then gets thrown out.


These predictions about Nickel Ore deficit will likely come true in 2H17.

Vale’s Q1 nickel output falls on operational issues



About Vale


Vale SA is a Brazilian multinational corporation. Engaged in metals and mining. It is one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world.

Vale’s nickel production declined in the first quarter of 2017. It was affected by planned maintenance shutdowns and operational challenges. Output of finished nickel came to 71,400 tonnes in the first three months of the year. It went down by 2.9% from the corresponding period of 2016.

In the fourth quarter of 2016, the miner produced 83,000 tonnes of nickel. This also represented a 14% decline.

Decline happened “mainly due to planned maintenance shutdowns in Indonesia and Japan. And someoperational challenges”.

Nickel & iron ore production


Production at Vale’s Thompson operations came to 4,800 tonnes of nickel in the first quarter of 2017. Down by 22.6% y-o-y and down 33.3% against the fourth quarter of 2016.

This reflects “the scheduled Q1 2017 transition to a single-furnace operation and certain operational issues. Including damaging elements in the founder feed and a hot metal leak in the smelter that resulted in approximately 10 days of production loss”.

Meanwhile, production from the Sudbury mines, in Canada, reached 17,900 tonnes in the first quarter of 2017. 8.2% lower than in the first quarter of 2016 and down by 10.1% from the fourth quarter of 2016.

According to Vale, “Sudbury source production was adversely affected, mainly due to inventory drawdown during the Q4 2016 and Q1 2016 periods”. (Fastmarkets)

Sudbury is expected to transition to a single furnace in the fourth quarter of 2017. It took its furnace number 2 offline in March. For a three-month rebuild and expansion

of its capacity.

“This will be the stove in operation when Sudbury officially transitions to a single furnace. Sudbury will have a three-week surface plant-wide scheduled maintenance shutdown in the second quarter of 2017.”

Nickel production decline


Vale’s total nickel production from all its Canadian operations came to 36,100 t in the first quarter of 2017, down by 1.4% from a year earlier and 16.8% lower than in the fourth quarter of 2016.

Meanwhile, Vale’s Indonesian operation saw its nickel in matte production reach 17,200 t in the first quarter of 2017. 2.0% higher than in the same period of 2016. But 12% lower than in the fourth quarter of 2016.

“The weaker nickel in matte production was due to the adverse impact of a planned maintenance works in its kilns and furnaces, if compared with Q4 2016.” (Vale)

Meanwhile, production of finished nickel from PTVI totaled 16,300 t in the first quarter of 2017, down by 8.4% on an annual basis and 25.2% lower than in the fourth quarter of 2016.

The output was negatively affected by a scheduled annual maintenance shutdown at the Matsusaka refinery in Japan.

By contrast, production of finished products from Vale’s New Caledonia operation (VNC) reached a record of 10,200 t in the first three months of 2017.


This represents an increase of 5.2% from the first quarter of 2016 and is 14.6% higher than in the fourth quarter of 2016.

Base metals subdued; Aluminium went slightly up


Essentially lower levels

Base metals prices started a holiday-shortened week mostly on the defensive. With LME premarket trading on Tuesday April 18 seeing lower levels. – Potentially supportive macroeconomic developments were shrugged off.

The exception was aluminium. It pushed higher on weekend news that planned Chinese capacity extensions were being put on ice.

On the other hand, copper and zinc were wafting. Near last week’s three-month lows, nickel touched its softest for two-and-a-half months. Lead hit its weakest for two months.

“Sentiment was a bit sloppy last week, and that has carried over today it seems. There is a run of short weeks now so business looks like being a bit patchy at times.”

Consequently, there was a muted reaction to Monday’s upbeat Chinese data! First quarter GDP grew 6.9% year-on-year, marking the fastest growth rate in 18 months. And most noteworthy beating forecasts of 6.8%


Metals session except Al


The rest of the session may see the lackluster trend being maintained ahead of a string of metals.

“The base metals have been showing weakness in recent weeks and have so far not seen any pick-up even amid the shift into the seasonally strong second quarter. The lack of upside momentum in most of the metals since mid-February has increased the chance of stale long liquidation,” William Adams of Metal Bulletin said.




Aluminium goes it alone; China supply clenching?

The three-month aluminium price forged higher, recently trading at $1,928 per tonne, up $18 from the Thursday close. The local government in Xinjiang, western China, halted three new aluminium projects with combined capacity of 2 million tons per year for violating rules aimed at curbing output.



Other near multi-month lows


The three-month copper price slid to $5,663 per tonne, a $29 decline, and looks vulnerable to a test of last week’s $5,615 low. While three-month zinc price was at $2,593 per tonne, a $31 loss, with a test of $2,558 – last week’s low-point – possible. Also, three-month lead price skidded as low as $2,200 per tonne, a $39 loss, while nickel fell to $9,560, down $190. Most noteworthy, three-month tin price stood at $19,795 per tonne, however, a $190 advance.


Currency moves and data releases


The dollar index was recently down 0.29 at 100.29.

Brent crude oil fell $0.61 to $55.00 per barrel.

In equities, the UK FTSE 100 index fell nearly 70 points to around 7,258.

In data today, US building permits, housing starts, the capacity utilisation rate and industrial production are due.


Crude Oil Update

Venezuela’s crude-stained oil tankers banned at sea (*check the link below)

  • June West Texas Intermediate crude oil futures are trading lower shortly before the regular session opening as investors react to a bearish government report.

Government data released on Monday showed that May output is expected to rise by 123,000 barrels per day to 5.19 million bpd.

If this information is right, May production will post its biggest monthly increase since February 2015 and the highest monthly production level since November 2015.

Overcoming the angle at $53.08 will indicate the return of buyers. This could create a labored rally into angles at $53.39, $53.77 and $53.95. Other is the last potential resistance angle before the $54.14 main top.

OPEC commented on its plans about extending to cut productio . But it may not be strong enough to turn this market around.