EUROPEAN MORNING BRIEF 07/02: SHFE base metals broadly higher; soaring US aluminium premium pressures global markets; US copper premium holds at highs

Good morning from Metal Bulletin’s offices in Shanghai as we bring you the latest news and pricing stories on Wednesday February 7.

Most base metals traded on the Shanghai Futures Exchange were in positive territory during Asian morning trading on Wednesday, with only lead prices weakening.

Nickel led the gains with a 1.6% rise amid a healthy demand picture and a recovery in the US stock markets, which helped ease the risk-off tone which had pervaded the market earlier this week.

Check Metal Bulletin’s live futures report here.

LME snapshot at 02.20 am London time
Latest three-month LME Prices
  Price ($ per tonne)  Change since yesterday’s close ($)
Copper 7,157 81
Aluminium 2,204 34
Lead 2,609.50 -11.5
Zinc 3,504.50 47.5
Tin 21,860 135
Nickel 13,690 305

SHFE snapshot at 10.21 am Shanghai time
Most-traded SHFE contracts
  Price (yuan per tonne)  Change since yesterday’s close (yuan)
Copper  53,110 360
Aluminium 14,265 125
Zinc 26,650 95
Lead 19,300 -165
Tin  151,700 1,700
Nickel  102,880 1,620

The squeeze in truck availability in the United States has pushed the Midwest aluminium premium higher for a fifth consecutive week, in turn exerting upward pressure on premiums across the globe.

Copper premiums in the US held steady this week after previously rising for the first time since November due to freight costs, and market participants are only expecting those inputs to rise throughout the next few months and potentially push premiums higher.

Some mill-grade aluminium scrap prices in the US inched lower with declines on the London Metal Exchange and limited spot demand, while smelter-grade prices maintained a steady footing.

Metal Bulletin has reviewed the feedback received as part of its consultation on amendments to its international cobalt price specifications, launched on November 27, 2017.

The US Commerce Department has extended its deadline for announcing final results of an administrative review of anti-dumping duties on oil country tubular goods from South Korea.

Ferrous scrap export prices from the US diverged in the latest bulk sales, with two deals to Turkey concluded at lower values while another cargo was sold to India at improved prices.

What to read next
The publication of Fastmarkets’ assessments for nickel 4x4 cathode, nickel briquette and nickel uncut cathode premiums in-whs Rotterdam was delayed on Tuesday July 16 because of a reporter error.
Fastmarkets has corrected its alumina index inferred prices, which were published incorrectly on Tuesday July 15.
The United States' copper recycling industry is ramping up pressure on policymakers to impose some form of export controls on high-purity copper scrap, arguing that current trade dynamics – particularly with China – are distorting prices, weakening domestic capacity and undermining national security goals.
Fastmarkets launched two new price assessments for Indonesia’s domestic trade in nickel ore on Tuesday July 15. The two price assessments are for domestic trades of Indonesian laterite ores with 1.6% and 1.2% nickel content. Indonesia now accounts for 60% of the global nickel supplies and while there is an official government reference price, known […]
US copper scrap market participants are shifting from COMEX to LME pricing in response to extreme price volatility and a new 50% copper import tariff. The change is influencing discount formulas, export strategies and long-term trading dynamics across the sector.
The proposal follows preliminary discussions with the market and internal analysis of price usage, which suggests low market liquidity and a lack of demand. Specifically, Fastmarkets is proposing to discontinue: MB-CU-0410 Copper rod premium, ddp Midwest US, US cents/lbQuality: Purity of 99.95-99.99%. Thicknesses of 8 millimeters or 0.3125 inchesQuantity: Min 25,000 poundsLocation: Delivered US MidwestUnit: US […]