EUROPEAN MORNING BRIEF 26/09: SHFE base metals consolidate; copper mating season begins; high alloy demand boosts manganese ore prices
Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Wednesday September 26.
Base metals prices on the Shanghai Futures Exchange were mixed during Asian morning trading on Wednesday, with many investors taking to the sidelines ahead of the US Federal Open Market Committee meeting later.
Movements in the SHFE base metals were fairly limited but prices were generally down due to persisting negative sentiment following an escalation in trade tensions between the United States and China earlier this week.
Check Metal Bulletin’s live futures report here.
Global copper participants are beginning to finalize 2019 annual contracts with Chilean mining giant Codelco setting European premiums at a four-year high. Meanwhile, US sources indicated that the producer is starting to negotiate supply deals with key consumers in the Gulf of Mexico region. Check our latest global copper wrap for more details.
Manganese ore prices have been boosted by expectations of increased demand for alloy after the Chinese government issued new standards for steel products to take effect in November.
Alumina prices fob Australia fell for the eighth pricing session in a row on Tuesday, with deals continuing to trade at lower levels.
Prices in the physical aluminium market came under pressure this week from bearish sentiment arising from the extended winding-down period for US customers of Russian producer Rusal, a backwardation on forward spreads, and weak demand.