EUROPEAN MORNING BRIEF 12/04: SHFE base metals prices under pressure; uncertainty plagues US Ali market after Russia sanctions; Codelco’s ‘feng shui’ copper to ship by start of ‘19

Good morning from Metal Bulletin’s offices in Shanghai as we bring you the latest news and pricing stories on Thursday April 12.

Base metals prices on the Shanghai Futures Exchange were broadly lower during Asian morning trading on Thursday, with rising geopolitical tensions subduing risk appetite in the market.

Geopolitical tensions picked up overnight after United States President Donald Trump made heated remarks about Russia’s involvement in Syria in a tweet, with a warning that American missiles may soon strike Syria after last week’s suspected chemical attack.

Check Metal Bulletin’s live futures report here.

LME snapshot at 02.57am London time
Latest three-month LME Prices
  Price ($ per tonne)  Change since yesterday’s close ($)
Copper 6,883 -67
Aluminium 2,232.5 -17.5
Lead 2,372 -37
Zinc 3,173 -65
Tin 20,955 -45
Nickel 13,720 -145

SHFE snapshot at 09.57am Shanghai time
Most-traded SHFE contracts
  Price (yuan per tonne)  Change since yesterday’s close (yuan)
Copper  50,710 -390
Aluminium 14,275 -100
Zinc 23,865 -715
Lead 18,600 115
Tin  143,050 -1,230
Nickel  101,420 -250

The US’ imports of unwrought aluminium rose in February versus the same month last year, according to US International Trade Commission data.

Market participants in the US are grappling with the implications of sanctions placed on UC Rusal by the US Department of the Treasury on April 6, with indications suggesting that aluminium supply should tighten in the coming months. 

The first shipments from Codelco’s pilot scheme to produce decommoditized copper with traceability throughout the supply chain are expected at the end of the year or by the start of 2019, the chairman of the Chilean state-run copper company said in an interview with Metal Bulletin.

Chinese laws restricting the nation’s copper scrap imports have already materially affected the European market, Aurubis executive board chairman Jürgen Schachler told Metal Bulletin in an interview.

European spot prices for molybdic oxide and ferro-molybdenum have dropped in line with demand on the spot market, with dealers expecting further price losses until renewed demand is triggered.

What to read next
The Chilean government is pushing ahead with plans for a new copper smelter despite the global smelting crisis, Chile’s minister of mining, Aurora Williams told Fastmarkets, adding that the state will also play a key role in developing the country’s premium lithium assets
Just under two weeks ago, the chair of BHP made a phone call to his counterpart at mining peer Anglo American and set in motion a flurry of activity designed to create the largest copper producer in the world
Brazilian aluminium supply coming from Companhia Brasileira de Alumínio (CBA) is said to have tightened, helping to boost the P1020A ingot premium, market participants told Fastmarkets in the two weeks to Wednesday April 24
In anticipation of a tight market, copper concentrate traders have locked in 2025 volumes at notably low treatment charges, with deals being placed well below the long-term industry benchmarks
This move aligns with global demands for sustainability in the mining sector and sets Nexa on a path toward achieving net zero emissions by 2050
Fastmarkets has corrected the pricing rationale for MB-AL-0302 aluminium 6063 extrusion billet premium, ddp North Germany (Ruhr region), $/tonne, which was published incorrectly on Friday April 19. No prices were corrected.