LIVE FUTURES REPORT 09/05: SHFE base metals prices broadly up; copper leads on the upside

Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Thursday May 10, with copper leading the rest of the complex, except aluminium and lead, higher.

The most-traded July copper contract on the SHFE traded at 51,220 yuan ($8,041) per tonne as at 10.55 am Shanghai time, climbing 350 yuan per tonne from Wednesday’s close. Around 130,582 lots have changed hands so far this morning.

Noticeable declines in copper stocks at London Metal Exchange warehouses on Wednesday have buoyed red metal prices this morning. LME copper stocks fell a net 9,600 tonnes to 293,025 tonnes yesterday. This followed a net decline of 8,750 tonnes on Tuesday.

“However, the surge in oil prices no doubt helped support investor sentiment across the complex, which was aided by a slightly weaker US dollar,” ANZ Research said on Thursday.

Oil prices had risen sharply in response to the news that the United States is pulling out of the Iran nuclear deal.

“Crude oil prices surged higher as the market reflected on the decision by President Trump to pull out of the Iran nuclear deal. The re-imposition of sanctions, which were waivered under the deal signed in 2015, could see exports reduced by around 300,000 barrels per day later this year,” ANZ Research added.

The dollar has also eased slightly since its recent rally at the start of the week. The index was down by 0.08% at 93.03 as at 10.55am Shanghai time, compared with a reading of 93.18 at roughly the same time on Wednesday. The index had reached a high of 93.42 yesterday – its highest reading since late December last year.

Base metals prices

  • The SHFE July aluminium contract price slipped 15 yuan per tonne to 14,615 yuan per tonne.
  • The SHFE July zinc contract price rose 80 yuan per tonne to 23,780 yuan per tonne, with approximately 130,000 lots having changed hands.
  • The SHFE June lead contract price dipped 65 yuan per tonne to 18,885 yuan per tonne.
  • The SHFE Sept tin contract price rose 320 yuan per tonne to 145,720 yuan per tonne.
  • The SHFE July nickel contract price increased 260 yuan per tonne to 104,160 yuan per tonne.

Currency moves and data releases

  • The dollar index edged down 0.08% at 93.03 as at 10.55 am Shanghai time.
  • In other commodities, the Brent crude oil spot price climbed 0.49% to $77.71 per barrel as at 10.55 am Shanghai.
  • In equities, the Shanghai Composite rose 0.16% to 3,164.29 as at 11.17 am Shanghai time.
  • In US data on Wednesday, the headline producer price index (PPI) disappointed with growth of 0.1% in April – below the expected 0.2% increase. Crude oil inventories declined by 2.2 million barrels, compared with an expected drop of 200,000 barrels.
  • In data today, China’s consumer price index (CPI) for April at 1.8% narrowly missed the forecast 1.9%, while the country’s producer price index (PPI) was in line with expectations at 3.4%.
  • Later there is a host of data from the United Kingdom including manufacturing production, goods trade balance, construction output, industrial production as well as the Bank of England’s inflation report, a vote on interest rates and subsequent decision and monetary policy summary.
  • US data today includes CPI, unemployment claims and natural gas storage.

LME snapshot at 03.55 am London time
Latest three-month LME Prices
  Price ($ per tonne) Change since previous session’s close ($)
Copper 6,838 28
Aluminium 2,337 -29.5
Lead 2,290 -2
Zinc 3,091 14.5
Tin 21,135 25
Nickel 13,875 -50
SHFE snapshot at 10.55 am Shanghai time
Most-traded SHFE contracts
  Price (yuan per tonne) Change since previous session’s close (yuan)
Copper (June) 51,220 350
Aluminium (June) 14,615 -15
Zinc (June) 23,780 80
Lead (June) 18,885 -65
Tin  (Sept) 145,720 320
Nickel  (July) 104,160 260
Changjiang spot snapshot on May 10
  Range (yuan per tonne) Change (yuan)
Copper  50,970-51,010 170
Aluminium 14,510-14,550 -40
Zinc 23,970-24970 -60
Lead 18,900-19,100 0
Tin  144,000-145,500 -250
Nickel  104,550-105,050 150
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