LIVE FUTURES REPORT 18/04: SHFE Al, Cu prices buoyed; rest weaker

Aluminium was the outperformer of the SHFE base metals this morning, with the metal’s most-traded June contract climbing to 14,020 yuan ($2,094) per tonne as at 10.39am Shanghai time, up by 50 yuan per tonne or 0.4% from its previous close of 13,970 yuan per tonne.

Copper also shrugged off the broad-based weakness experienced by its peers, buoyed by healthy gross domestic product (GDP) figures out of China and a strong close by the London Metal Exchange’s three-month copper price on Wednesday.

Copper’s three-month price on the LME climbed above $6,600 per tonne at the close of trading on Wednesday, after hitting an intraday high of $6,608.50 per tonne – its highest level of the year.

Red metal prices had been supported by a string of Chinese economic data that beat expectations.

China’s economy grew by 6.4% year on year in the first quarter of 2019, above expectations for an increase of 6.3% and steady with the prior quarter, according to official data released on Wednesday.

In other releases, industrial production jumped by 8.5% year on year in March, surging past the expected 5.9% increase. Retail sales for March were similarly strong, up by 8.7% year on year and surpassing the forecast 8.4% growth.

Despite this, copper prices on the SHFE were only up modestly on Thursday morning after hitting a high of 50,080 yuan per tonne – its highest since early March – earlier in the session. The most-traded June copper contract was up by just 70 yuan per tonne or 0.1% to 49,580 yuan per tonne as at 10.39am Shanghai time.

With a host of manufacturing data out across Europe and the United States – see other highlights – and a number of markets winding down ahead of the Good Friday holiday tomorrow, trade is expected to be lackluster while participants take to the sidelines.

Other highlights
– The dollar index has reclaimed the psychological level of 97 – it was little changed from its previous close at 97.03 as at 11.34am Shanghai time.
– The Shanghai Composite was down by 0.23% at 3255.67 as at 11.30am Shanghai time.
– In European data on Wednesday, the UK’s consumer price index (CPI) year on year for the March period was stable at 1.9%, missing expectations of a rise to 2%. Producer price index (PPI) input on a month on month basis over the same period fell to -0.2%, down from 1% the prior month.
– The UK’s retail price index (RPI) year on year for the March period fell 0.1% to 2.4%, missing an expected rise to 2.6%.
– The European Union’s CPI rose by 1.4% in March, in line with expectations, while its trade surplus widened to €17.9 billion ($20.2 billion) in February – up from €17.4 billion in the prior month.
– In US data on Wednesday, the country’s trade deficit narrowed to $49.4 billion in February from $51.1 billion previously.
– In data on Thursday, there is a host of manufacturing purchasing managers’ index (PMI) data from the EU, France, Germany and the US due. The German reading in particular will garner much market focus after a shock fall from 47.6 to 44.1 in March.