Base metals prices on the London Metal Exchange remained on split paths at the close of trading on Wednesday May 16, with low volumes traded and broad consolidation in effect across the complex amid a surging dollar. Read more in our live futures report.
Here are how prices looked at the close of trading:
UC Rusal continues to struggle to export any of its aluminium production from Russia despite an easing in sanctions implemented by the United States, sources said on May 16.
Lower than expected mined zinc output and smelter maintenance in China will support zinc prices above $3,000 per tonne this year, He Qiang, general manager of zinc smelter Dong Ling Group International Trade, said at a side event of LME Week Asia.
Aluminium inventories are set to drop during the second quarter of this year, with prices expected to increase to $2,500 per tonne, Tracy Liao, strategist for industrial commodities at Citi Research, also said at LME Week Asia.
The increased acceptance by humans that they cannot fight the rise of technology and algorithmic trading has brought numerous changes to the type of trades taking place on the LME, according to Guy Wolf, head of market analytics at Marex Spectron.
Spot market copper concentrate treatment and refining charges rose to 3.5-month highs in mid-May, with the market becoming progressively bearish due to a continued outage at Sterlite Copper’s Tuticorin smelter in India.
Noble Group’s metals, minerals and ores business posted operating income of $11 million in the January-March quarter, reversing a $32-million operating loss in the same period last year amid higher prices, the company said on May 15.
Primary aluminium stocks at the three main Japanese ports of Yokohama, Nagoya and Osaka rose 8.9% month on month in April, according to Marubeni Corp data released on Wednesday.
In ferrous news, buying activity in the Iranian export billet market was lively during the week ended May 16, with customers rushing to place orders for July-shipment material, especially those in the Gulf Co-operation Council (GCC) countries.
Meanwhile, GCC countries are finding common ground over the threat from steel being redirected as a result of the US decision to impose tariffs on imports.
Tata Steel, “continues to be bullish on steel prices and spreads with the improving demand situation in India,” chief executive officer and managing director TV Narendran said on Wednesday.