EUROPEAN MORNING BRIEF 05/04: Base metals prices higher on possible US-China trade talks; Shanghai copper premium hits 17-month high; PPS floats copper tender

Good morning from Metal Bulletin’s office in Singapore as we bring you the latest news and pricing stories on Thursday April 5.

Base metals prices on the London Metal Exchange were all higher during Asian morning trading on Thursday amid hopes that talks between the United States and China could avert a global trade war.

The LME three-month copper price was at $6,747 per tonne as of 03.29am London time, up by $23 per tonne from Wednesday’s closing price.

The Shanghai Futures Exchange is closed on Thursday and Friday to mark the Qing Ming Festival, or tomb-sweeping day.

Check Metal Bulletin’s live futures report here.

LME snapshot at 03.29am London time
Latest three-month LME Prices
  Price ($ per tonne) Change since previous session’s close ($)
Copper 6,747 23
Aluminium 1,997 6
Lead 2,376.50 4.5
Zinc 3,262.50 4.5
Tin 20,940 40
Nickel 13,280 130

Copper premiums in Shanghai rose to a 17-month high with market participants hoping for declining import costs following a cut in value-added tax (VAT).

South Korea’s Public Procurement Service (PPS) has floated a tender to procure 500 tonnes of grade A copper cathode, according to a notice from the state agency published late on Wednesday.

Teck Resources Ltd has increased its stake in Compañía Minera Teck Quebrada Blanca SA through the purchase of private Chilean firm Inversiones Mineras SA, the Canada-headquartered company said.

Zorba prices are beginning to fall in the US, with fears of mounting supplies rippling through the market due to China’s 25% tariff on US aluminium scrap imports.

Despite this week’s statement from the US Environmental Protection Agency announcing plans to revise greenhouse gas and corporate average fuel economy standards, experts who spoke to American Metal Market expect automotive lightweighting to continue.

Metal Bulletin is hosting a free web seminar at 9am London time today to discuss the key drivers of the battery raw materials markets, including substitution risk, electric vehicle policy, and supply of lithium, nickel and cobalt. Click here to register.

What to read next
Saudi Arabia, through its spearheading of a mining and minerals production and consumption push in the Middle East, a region usually associated with oil and gas, is leading neighboring countries to increase their presence in the base metals markets
Indonesia is preparing to invest more in its aluminium supply chain as part of its wider critical metals strategy, Fastmarkets understands
Market sentiment remain mixed on whether the investigation will impact aluminium prices and production
Aluminium premiums in all key regions remained well-supported in the week to Tuesday June 18, amid ongoing reports of tight availability, while market participants in Europe and Asia are focusing on ongoing negotiations for Japanese third-quarter supplies
The Kingdom of Saudi Arabia’s (KSA) ambitious plan to diversify away from oil and into metals will increase local nickel consumption and fund international mining projects, given recent massive investments in nickel-intense industries
Fastmarkets proposes to amend the name of the MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb to clarify that the price is based on the London Metal Exchange cash aluminium price.