EUROPEAN MORNING BRIEF 14/12: Most SHFE base metals prices higher; SPCC’s output unaffected by strike; US copper contract talks nearing end
Good morning from Metal Bulletin’s office in Shanghai as we bring you the latest news and pricing stories on Thursday December 14.
Base metals prices on the Shanghai Futures Exchange were broadly higher during Asian morning trading on Thursday, underpinned by weakness in the dollar, while lead was the sole metal in negative territory.
The base metals have been broadly supported by weakness in the dollar this morning after the US Federal Reserve delivered a much-expected interest rate rise on Wednesday but flagged concerns about inflation in its accompanying statement.
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A three-week strike at Southern Peru Copper Corp (SPCC) has had no material impact on the miner’s copper production.
Copper market participants in the United States will be wrapping up annual contracts for 2018 over the next few days as the holiday season looms for the industry, with early opinions mixed on the outcome of talks.
The restart of some of Glencore plc’s idled zinc capacity is not expected to disrupt the market, largely because the news was anticipated and the market is already in a deficit.
Aluminium prices could potentially run into some downside next year, thanks in part to Chinese capacity cuts not living up to the market’s standards along with other factors, according to Moody’s Investors Service Inc.
The US aluminium market is skeptical that a conclusion to the Section 232 investigation is coming ahead of its due date in January 2018, contrary to recent media reports.