EUROPEAN MORNING BRIEF 24/05: Rusal sanctions weigh on US ali extruders; July backwardation pushes Rotterdam ali premium down; European zinc premiums at multi-year lows

Good morning from Metal Bulletin’s offices in Asia, bringing the latest news and pricing stories on Thursday May 24.

Copper prices on the Shanghai Futures Exchange (SHFE) tracked those on the London Metal Exchange (LME) lower during Asian morning trading on Thursday May 24 as the US dollar continued to strengthen, while lead saw its rally continue apace.

Check Metal Bulletin’s live futures report here.

LME snapshot at 03:08 London time

Latest 3M  LME Prices

 

Price ($/t)

 Change since yesterday’s close ($)

Copper

6,855

-12

Aluminium

2,274

4

Lead

2,480

3.5

Zinc

3,017

-12.5

Tin

14,580

-70

Nickel

20,585

-50

SHFE snapshot at 10:04 Shanghai time

Most traded SHFE contracts

 

Price (yuan/t)

 Change since yesterday’s close (yuan)

Copper 

51,350

-420

Aluminium

14,675

75

Zinc

23,420

-185

Lead

20,055

305

Tin 

147,530

270

Nickel 

107,840

-600

 

Changjiang spot snapshot on May 24

 

Range (yuan/t)

 Change (yuan)

Copper 

51,620—51,660

350

Aluminium

14,480—14,520

-120

Zinc

23,930—24,930

-210

Lead

20,000—20,200

-100

Tin 

144,000—145,550

0

Nickel 

108,150—108,250

750

The sanctions levied on Russian oligarch Oleg Deripaska and affecting Russian aluminium producer UC Rusal have led to a price squeeze for US extruders – fulfilling the expectations of American Metal Market readers.

The Rotterdam aluminium premium fell for a second straight day, with a looming backwardation in the July/August spread pushing the market down and stirring expectations of further drops.

Premiums for zinc in Rotterdam and Antwerp dropped to multi-year lows this week on feeble spot demand while lead premiums remained stable despite a production lull during the Islamic holy month of Ramadan in Muslim-majority countries.

The tin premium in Europe fell to a two-month low due to Indonesian supply flowing back into that market, while premiums in the United States and China were steady due to healthy demand absorbing sufficient supply.

Chris Evans has become head of strategy at Circulor, which provides blockchain technology to the electric vehicles (EV) supply chain.