The three-month copper price edged $8.50 per tonne higher recently as it tried to recoup some of the 2.5% loss yesterday. Prices collapsed as the stronger dollar ignited profit-taking among investors, ANZ Research noted.
Zinc prices continued to dip today, falling a further $15 per tonne as 61,100 tonnes of zinc was re-warranted today. In New Orleans, on-warrant zinc stocks are now over double the amount of cancelled stocks. This follows a 16,250 tonnes of re-warranting in Antwerp yesterday. Zinc on-warrant stocks are back to levels not seen since March.
The significant backwardation on zinc spreads has also collapsed; the cash/three-month spread is now at $23 per tonne backwardation, down from its high of $91 per tonne on October 12.
“The softening of zinc and lead prices will also be likely to lead the copper price to fall,” Citic Futures Research said.
The three-month nickel price regained some ground, climbing back up to $11,790 per tonne as it continues to be backed by supply tightness and stable demand.
“On the supply side, tightness due to production limitations on environmental grounds continue to lend support to the nickel price; […] meanwhile, the market sees stable demand from stainless steel mills whose profit margins have widened,” Citic Futures Research noted.
Base metals prices mixed
Currency moves and data releases